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Full text of "Minutes"

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San Francisco Public Library 

GOVEKHMtNi iiii-OKJMTIQN CENTER 
SAN FRAMQSCO PUBUC UBKAKY 

REFERENCE BOOK 

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[All Committees] /-- 

City and County of San Francisco Gover nment Document Section 
J J Main Library 

Meeting Minutes 

Finance and Labor Committee 

Members: Supervisors I. eland Yee, Sue Bierman, Tom Ammiano 
Clerk: Mary Red 



Wednesday, May 03, 2000 



10:00 AM 
Regular Meeting 



City Hall, Room 263 



Members Present: Leland Y. Yee, Sue Bierman, Tom Ammiano. 



Meeting Convened 



000451 



The meeting convened at 10: 12 a.m. 



DOCUMENTS DEPT. 

MAY 1 2000 

SAN FRANCISCO 
PUBLIC LIBRARY 



[Bessie Carmichael School) 
Supervisor Yee 

Hearing to assess the cost, scope and progress of rebuilding the Bessie Carmichael School and the community 
park surrounding the school site. 

3/13/00, RECEIVED AND ASSIGNED to Finance and Labor Committee 

Heard in Committee. Speakers: Supervisor Yee; Supervisor Ammiano; Nancy Sarrage, Principal. Bessie 
Carmichael School; Luz de Leon, Filipino Resource Center; Barbara Washington; Paula Baum, Nurse, 
SFUSD; Richard White, PTA; McCanvas, Coordinator, Healthy Start; Judy Carman. PTA; Bernadette Borja 
Sy, Filipino American Development Foundation; Patrice Johnson. South of Market Childcare; Linda Davis. 
Acting Superintendent, SFUSD; Cheryl Gaston; Elizabeth Goldstein, Recreation and Park Department; Bob 
McDonald, Recreation and Park Department. 
CONTINUED TO CALL OF THE CHAIR by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



000738 [Reserved Funds, Department of Children, Youth and Their Families) 

Hearing to consider release of reserved funds, Department of Children, Youth and Their Families, (Fiscal Year 
1999-2000 Budget), in the amount of $350,000 to implement the Unified School District School Based-Health 
Pilot Program at Lincoln and Galileo High Schools. (Mayor) 
4/21/00, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Ken Bruce. Budget Analyst; Supervisor Yee; Deborah Alvarez. Director. 
Department of Children. Youth and Their Families; Jimmy Loyce. Deputy Director. Department of Public 
Health (DPH); Sally Chow. SFUSD; Trish Bascom, SFUSD; Sai-Ling Chang-Sew, DPH; Taj James. Colman 
Advocates; Erin McGrath, Mayor's Budget Office; Steven Currier. Excelsior Youth Center, Ally Winehouse, 
Teacher, Lincoln High School; Janet Michaelson, Supervisor Katz's Aide. 
APPROVED AND FILED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



City and County of San Francisco 



Printed at 11:52 IW on - 4 on 



Finance and Labor Committee 



Meeting Minutes 



\U,\ 1, 2UIIII 



000524 [Authorizing expenditure of funds estimated at S4.2 10,000 for emergency repair of San Joaquin Pipeline 
No. 3) 
Resolution authorizing expenditure of funds for emergency repair ol corrosion in San Joaquin Pipeline No 3 

of the 1 letch I tetchy Aqueduct. (Public Utilities Commission) 

(Fiscal impact.) 

3/22/00, REC! IVI DANDASSICN1 D to Finance and Labor Committee 

4 19/00, ( ONTINUI D I ontinued to April 26, 2000. 

4/26/00, CONTINUED Continued to May 3, 2000. at request ol department 

Head in Committee Speakers ken Bruce Budget Analyst, Supervisor Yee 

RECOMMENDED by the follo»inu \ote: 
Ayes: 2 - Yee, Bierman 
Absent: 1 - Ammiano 



000432 (Requirements Suspended for Certain Transient Merchants] 
Supervisor Leno 

Ordinance amending Article 3 of Part III of the San Francisco Municipal (ode. b\ amending Section 250. 
excepting certain transient merchants that operate at Moscone (enter or the Bill Graham ( i\ ic Auditorium and 
agree to comply with all the City and County of San Francisco's rules from the licensing and fee requirements 
otherwise applicable to transient merchants under Article 3; and enabling enforcement by means ol citation 

(Amends Section 250.) 

3/13/00, ASSIGNED UNDI R30DA\ RI I I to Finance and Labor Committee, expires i 

4/26/00, CONTINUED Heard in Committee Speakers Harvey Rose, Budget Analyst; Marti Paschal, Supervii 

Moerschbaecher, Director, S F Convention Facilities; Supervisor Ammiano; Susan I cal. Treasurer. Richard Sullixan, s .: 

Continued to Mas ; 

Heard in Committee Speakers Ken Bruce, Budget Analyst. Supervisor Yee. Susan Leal. Treasurer. Jack 
Moerschbaecher, Director. S.F. Convention Facilities. Marti Paschal. Supervisor Lena's Aide. Tom (>■■ 
Deputy City Attorney, Richard Sullivan 
RECOMMENDED by the follov\ing \ote: 
Ayes: 3 - Yee, Bierman, Ammiano 



000433 (Amendment to Definition of Transient Merchant - Temporary Business| 
Supervisor Leno 

Ordinance amending Article 3 of Part III of the San Francisco Municipal Code, by amending Section 251, 
defining the term temporary business to mean a business conducted for less than seven days, and excluding 
pumpkin sellers from the definition of transit merchant. 

(Amends Section 251.) 

3/13/00, ASSIGNED UNDER 30 DAY RULE to Finance and Labor Committee, expires on 4 1 2 2000. 

4/26/00, CONTINUED. Heard in Committee Speakers Harve) Rose. FJudgct Analyst; Mam Paschal. Supervisor I .cno's Aide. Jack 

Moerschbaecher, Director, S F Convention Facilities; Supervisor Ammiano. Susan Leal. Treasurer. Richard Sullivan. Supervisor Yee 

Continued to May 3, 2000. 

Heard in Committee. Speakers Ken Bruce. Budget Analyst; Supervisor Yee; Susan Leal. Treasurer. Jack 
Moerschbaecher. Director. S.F. Convention Facilities. Marti Paschal. Supervisor Lena's Aide. Tom Owen. 
Deputy City Attorney; Richard Sullivan 
RECOMMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



City and County of San Francisco 



Printed at 11:52 -M/ on J i 00 



Finance and Labor Committee 



Meeting Minutes 



May 3, 2000 



000434 [Requirements Suspended for Certain Transient Merchants) 
Supervisor Leno 

Ordinance amending Article 3 of Part III of the San Francisco Municipal Code, by amending Section 252, 
excepting certain transient merchants that operate at Moscone Center or the Bill Graham Auditorium and agree 
to comply with all the City and County of San Francisco's rules from the requirement that they apply for a 
license under Article 3. 

(Amends Section 252.) 

3/13/00, ASSIGNED UNDER 30 DAY RULE to Finance and Labor Committee, expires on 4/12/2000. 

4/26/00, CONTINUED. Heard in Committee. Speakers: Harvey Rl,„, Budget Analyst; Marti Paschal. Supervisor Leno's Aide; Jack 

Moerschbaecher, Director, S.F. Convention Facilities; Supervisor Ammiano, Susan Leal, Treasurer; Richard Sullivan; Supervisor Yee. 

Continued to May 3, 2000. 

Heard in Committee. Speakers: Ken Bruce. Budget Analyst; Supervisor Yee; Susan Leal, Treasurer; Jack 
Moerschbaecher, Director, S.F. Convention Facilities; Marti Paschal, Supervisor Leno's Aide; Tom Owen. 
Deputy City Attorney; Richard Sullivan. 
RECOMMENDED by the following vote: 

Ayes: 3 - Yee, Bierman, Ammiano 



000435 [Fee Reduction During Suspension Period| 
Supervisor Leno 

Ordinance amending Article 3 of Part III of the San Francisco Municipal Code, by amending Section 253, 
reducmg the fees payable by transient merchants during the suspension period. 

(Amends Section 253.) 

3/13/00, ASSIGNED UNDER 30 DAY RULE to Finance and Labor Committee, expires on 4/12/2000. 

4/26/00, CONTINUED. Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Marti Paschal, Supervisor Leno's Aide; Jack 

Moerschbaecher, Director, S.F. Convention Facilities; Supervisor Ammiano; Susan Leal, Treasurer; Richard Sullivan; Supervisor Yee. 

Continued to May 3, 2000. 

Heard in Committee. Speakers: Ken Bruce, Budget Analyst; Supervisor Yee; Susan Leal. Treasurer; Jack 
Moerschbaecher, Director, S.F. Convention Facilities; Marti Paschal, Supervisor Leno's Aide; Tom Owen. 
Deputy City Attorney; Richard Sullivan. 
RECOMMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



City and County of San Francisco 



Printed at II: <: t\t on 5 4 HI) 

4 47608 SFPL: ECONO JRS 

01 cc-di r>?/i <v 24 



Finance and Labor Committee 



Meeting Minutes 



May I, 21)1111 



000436 [Requirements Suspended for Certain Transient Merchants- la\ Return Filing) 

Supervisor Leno 

Ordinance amending Article ; ofPart III of the San Francisco Municipal Code, by amending Section 

exempting those certain transient merchants that operate at Moscone Center or the Hill (iraham Civic 
Auditorium and agree to comply with all the City and County of San Francisco's rules from the tax return 
filing requirement otherwise applicable to transient merchants under Article 3; and exempting all other 
transient merchants from such tax return filing requirement during the suspension period. 

(Amends Section 254.) 

00, ASSIGNED UNDER 30 DAY Rl II to Finance and Labor Committee, expires a • 

ONTINI ED Heard in Committee Speakers Harvey Rose, Budget Analyst; Marti Paschal, Supen 
Moerschbaecher, Director, S I Convention Facilities; Supervisor Ammiano; Susan I ea hard Sullivan. S 

Continued to Maj 3, 2000. 

Heard in Committee Speakers Ken Bruce, Budget Analyst, Supervisor Yee, Susan Leal fack 

Moerschbaecher, Director, S.F Convention Facilities, Marti Paschal. Supen 
Deputy ( 'ity Attorney, Richard Sullivan 
RECOMMENDED In the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



000437 [Requirements Suspended for Certain transient Merchants! 
Supervisor Leno 

Ordinance amending Article 3 of Part 111 of the San Francisco Municipal Code, b) amending Section .' 
exempting those certain transient merchants that operate at Moscone Center or the Bill < iraham Civ ic 
Auditorium and agree to comply w nh all the City and County of San Francisco's rules from the bonding 
requirement otherwise applicable to transient merchants under Article 3, 

(Amends Section 2 

3 1 3/00, ASSIGNED UNDER 30 DAY RULE to Finance and Labor Committee, expires on 4 12 . 

4 26/00, CONTINUED. Heard in Committee Speakers Harvey Rose, Budget Analyst; Marti Paschal, Supen I Jack 
Moerschbaecher, Director, S I Convention Facilities; Supervisor Ammiano, Susan I eal, treasurer; Richard Sullivan. Supervisor Yee 
Continued to Ma> 3, 2000. 

Heard in Committee Speakers Ken Bruce, Budget Analyst; Supervisot Yee Susan Leal, Treasurer; Jack 
Moerschbaecher, Director. S F. Convention Facilities. Marti Paschal. Supervisor I Tom Owen, 

Deputy City Attorney, Richard Sullivan. 
RECOMMENDED by the following vote: 

Ayes: 3 - Yee, Bierman, Ammiano 



G'ry and County of San Francisco 



Printed a. 11:52 1W on H-00 



Finance and Labor Committee 



Meeting Minutes 



May 3, 2000 



000438 (Elimination of Penalty During Suspension Period - Violation of Article 3) 
Supervisor Leno 

Ordinance amending Article 3 of Part III of the San Francisco Municipal Code, by amending Section 257, 
eliminating the penalty on transient merchants that violate the provisions of Article 3 during the suspension 
period. 

(Amends Section 257.) 

3/13/00, ASSIGNED UNDER 30 DAY RULE to Finance and Labor Committee, expires on 4/12/2000. 

4/26/00, CONTINUED. Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Marti Paschal, Supervisor Leno's Aide; Jack 

Moerschbaecher, Director, S.F. Convention Facilities; Supervisor Ammiano; Susan Leal, Treasurer; Richard Sullivan; Supervisor Yee. 

Continued to May 3, 2000. 

Heard in Committee. Speakers: Ken Bruce, Budget Analyst; Supervisor Yee; Susan Leal, Treasurer; Jack 
Moerschbaecher, Director, S.F. Convention Facilities; Marti Paschal, Supen'isor Leno's Aide; Tom Owen, 
Deputy City Attorney; Richard Sullivan. 
RECOMMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



000439 [Requirements Suspended for Certain Transient Merchants - Licensing Requirements] 
Supervisor Leno 

Ordinance amending Article 3 of Part III of the San Francisco Municipal Code, by amending Section 258, 
exempting those certain transient merchants that operate at Moscone Center or the Bill Graham Auditorium 
and agree to comply with all the City and County of San Francisco's rules from the licensing requirements 
otherwise applicable to transient merchants under Article 3. 

(Amends Section 258.) 

3/13/00, ASSIGNED UNDER 30 DAY RULE to Finance and Labor Committee, expires on 4/12/2000 

4/26/00, CONTINUED. Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Marti Paschal, Supervisor Leno's Aide, Jack 

Moerschbaecher, Director, S.F. Convention Facilities; Supervisor Ammiano; Susan Leal, Treasurer; Richard Sullivan; Supervisor Yee. 

Continued to May 3, 2000. 

Heard in Committee. Speakers: Ken Bruce, Budget Analyst; Supen'isor Yee; Susan Leal, Treasurer; Jack 
Moerschbaecher, Director, S.F. Convention Facilities; Marti Paschal, Supervisor Leno's Aide; Tom Owen, 
Deputy City Attorney; Richard Sullivan. 
AMENDED, AN AMENDMENT OF THE WHOLE BEARING NEW TITLE. 

Ordinance amending Article 3 of Part III of the San Francisco Municipal Code, (Business and Tax Regulations 
Code) by adding Section 258 to suspend application of licensing and other requirements for transient 
merchants. 

Continued to May 10, 2000. 

CONTINUED AS AMENDED by the following vote: 

Ayes: 3 - Yee, Bierman, Ammiano 



000670 |Prop J, Contracting Out Jail Food Services| 

Resolution approving the Controller's certification that county jail food service management operations for the 
City and County of San Francisco can practically be performed by private contractor at a lower cost for the 
year commencing July 1, 2000, than if work were performed by City and County employees (Sheriff) 
4/12/00, RECEIVI-.D AND ASSIGNED to Finance and Labor Committee, 

Heard in Committee. Speakers. Ken Bnnc. Budget Analyst, Vickie Hennessey, Sheriffs Department, 
RECOMMENDED by the following vote: 

Ayes: 2 - Yee, Bierman 

Absent: 1 - Ammiano 



City and County of San Francisco 



Printed at 11:52 AM on 5/4/00 



Finance and Labor Committet 



Meeting Minutes 



\la\ I. 2(100 



000673 | Prop J, Contracting Out Own Recognizance Project| 

Resolution approving the Controller's certification thai the San Francisco Own Recognizance Project tor the 
City and County of San Francisco can practically he performed by private contractor at a lower cost for the 
year commencing July 1. 2000, than if work were performed by ( it> ami ( aunty employees (Sheriff) 
4/12/00, R] (Tl\ ED AND ASSIGN] Dtol inanceand Labor Committee 

I Lard m Committee Speakers Ken Bruce, Budget Analyst, Vickie Hennessey, Sheriffs Department 
RECOMMENDED by the following vote: 

Ayes: 2 - Yee, Bierman 

Absent: 1 - Ammiano 



000674 |Prop J, Contracting Out Pretrial Diversion Program] 

Resolution approving the Controller's certification that the Pretrial Diversion Program for the City and County 

of San Francisco can practically be performed by private contractoi at a lower cost for the year commencing 

July 1, 2000, than if work were per formed by City and County employees (Sheriff) 

4/12/00, RECEIVED AND ASSIGNED to I inancc and I abor Committee 

Heard in Committee. Speakers Ken Bruce, Budget Inalyst, Vickie Hern riff s Department 

RECOMMENDED by the following \ote: 
Ayes: 2 - Yee, Bierman 
Absent: 1 - Ammiano 



City and County of San Francisco 



Printed at 11:52 4 V on $ 4 00 



Finance and Labor Committee Meeting Minutes May 3, 2000 



990252 [Living Wage Ordinance] 

Supervisors Ammiano. Bierman 

Ordinance amending the Administrative Code by adding Chapter 12N (Sections 12N.1 through 12N.13) to 
provide that a prescribed minimum level of compensation (A "Living Wage") be paid to certain employees of 
parties who enter into contracts for the exclusive use of property owned by the City and County and to certain 
employees of parties who enter into contracts for the exclusive use of property owned by the City and County; 
adds Section 20.58.6 to provide that the number of hours of services required of general assistance recipients 
who are performing services in order to maintain eligibility shall be calculated using the living wage; adds 
Section 20.77.6 to provide that the maximum number of hours of services required of persons who are 
performing services in order to maintain eligibility for liic monthly PAES stipend shall be calculated using the 
living wage; and adding Section 70.1 1 to provide that employees of the In-home Supportive Services Public 
Authority be paid the living wage. 

(Fiscal impact; Adds Sections 12N.1 through 12N.13. 20.58.6 and 20.77.6.) 
2/17/99, RECEIVED AND ASSIGNED to Finance and Labor Con,.., mee 

3/6/99, CONTINUED. Heard in Committee. Speakers: Father Peter Sammon; Nettie Ceasar; Danny Elvena; Bemadine Emperodor; 
Garth Gandy, People Organized for Employment Rights (POWER); Martina Gills; Josie Moonie, Bob Planthold, Nancy Lewis, RN; 
Lucille Flato; Khilil Ali; Lester Martin; Darnel Loggins; Arthur Campagna, Hank; Robert Boileau; Jim Illig; Pat Breslin, Shirlley Bierly, 
Council for Older Americans; David Novogrodsky; Julia Lopez; Sam Sui; Garrett Jenkins; Frederick Hobson; Milissa Bowen; Mikki 
Ellis; Stan Thomson, POWER; Raymond Liu; Walter Johnson, S.F. Labor Council; Rand Quinn, Coalition for Immigrant Rights; Richard 
Klinke; Jonathan Beauer; Charles Andrew; Ricardo Brooks Alba; Richard Ow, Dorothy James, Ed Williard; Marvin Warren; Fred Pecker, 
Dennis Kelly; Tim West; Denise D'Anne; Dawn Moore; Alma Santana; Cnss Romero, Harvey Milk Democratic Club; Bill Price, 
President Senior Action Network; Erlinda Villa; Anna Sanchez; Richard Leung; Kent Mitchell; Jonathan Perez; Steven Curria; Margaret 
Hanlon-Gradie. Supervisor Bierman added as cosponsor. Continued to March 18, 1999. 

3/18/99, CONTINUED TO CALL OF THE CHAIR. Heard in Committee. Speakers: Rosie Byers, Homecare Worker; Ana Maria Loya, 
Director, LaRaza Centra Legal; Gary Atienza, Security Guard, Eric Mar, Director, Northern California Coalition for Immigrant Rights; 
Anuradha Mittal, Policy Director, Food First; Laura Trupin, UCSF; Steve Collier, Tenderloin Housing Clinic; Tom Van Dyke; Managing 
Director of Investments, U.S. Bank/Piper Jaffray; Dr. Rajiv Bhatia, Division of Population Health and Prevention, Department of Public 
Health; Bob Ow; Catherine Raza, Homecare Workers; Deirdre Keane, Full-time Student; Dnca Schoenberger, John Hopkins; Mark 
Gleason; Mario Flores; Vera Haile, In-Home Supportive Services; Tim West, Local 1877; Bruce Allison, Disabled; Kay Walker, SEIU; 
David Giesen; Erin McClary; Conny Ford; Marylouise Lovett, Women's Forum; Mikki Ellis; Ron Dicks, Local 21; Wade Hudson; Blair 
Fuller, Writer, Elva Cross-Garrett, Local 535; Howard Williams, Bike Messenger; Cleve Farondi; Juan Flores; Erin Morra; Mr. Verrt, 
Taxicab Workers Union; Mrya Lopez; Mike Doolin, Rental Car Employee; Chris Romero, Harvey Milk Democratic Club ; Christine 
Gaddi, Student Union 205, City College of San Francisco; Rosana Majica; Bob Ulreich, Museum of Modem Art, Robert O'Malley; Elveta 
Stewart; Yolanda Catzalco; Elizabeth Boardman, Adult Day Health Center; Sally Buchman; Rua Graffis, Taxicab Driver; Eduardo 
Capillong; Louis Fiammetta; Reg O'Hare; Michael Butler; Security Guard; Daisy, Exoic Dancer's Alliance; Larry Edmund; Jason Broom. 
5/3/99, SUBSTITUTED. Supervisor Ammiano presented a living wage ordinance. 
5/3/99, ASSIGNED UNDER 30 DAY RULE to Finance and Labor Committee, expires on 6/2/1999. 
2/22/00, RECEIVED AND ASSIGNED to Finance and Labor Committee. 
2/22/00, SUBSTITUTED Submitted by Supervisor Ammiano in Board. 

Heard in Committee. Speakers: Supenisor Ammiano; Brian Murphy, Professor, S. F. State College; Michael 
Reich, Professor, U. C Berkeley; Jim lllig, Chair, Living Wage Task Force; Rajiv Bhatia. M.D., Department 
of Public Health; Juanita Miles. Commission on the Status of Women; David Curto; Department of Human 
Services; Calvin Welch, Living Wage Task Force; Jim Mathias. S.F. Chamber of Commerce; Jo Lyme 
Lockley; Glynn Washington, Human Senices Network; Kathleen Harrington. Golden Gate Restaurant 
Association (GGRA); Lara Truppelli, Beach Chalet; Patricia Breslin. GGRA; Amy Pompei, Pompei Grotto; 
George Lyons; Brian; Robert Wellbeloved; Betelnut Restaurant; Paul Lazzareschi; Robert O'Malley. Living 
Wage Coalition; Steven Cornell. Council of District Merchants (COM): Chris Ditthafer. (COM); Berry; Tom 
Creedon, Scoma's Restaurant; Laura Fraum; Mariann Costello; Helen Hobbs. Tin Margarita; Colleen 
Meharry, Ms. Brown's Restaurant; Mark Mosher; Rolf Mueller (CDM); Supenisor Bierman. Continued to 
May 24, 2000. 

CONTINUED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



City and County of San Francisco 7 Printed at 1 1 S 2 ^ M on V4/00 



Fbtanct ami labor Committee 



Meeting Minutes 



May 1, :ilt)(l 



000476 |. Administratis c (Ode Chapters 12 a. I2H. 12c - Discrimination Based on Weight or Height I 
Supervisors Ammiano, Bierman 

Ordinance amending Chapter 12A of the San Francisco Administrative Code by amending Sections 12A.1. 
12A.5, and 1 2A. 8, amending Chapter 1215 by amending Sections I2B 1 ami 1 2B.2, amending Chapter l2Cby 
amending Sections 12(1 and 12C.3. and amending .Article 33 of the San I rancisco Police < ode h\ amending 
Sections 3303, 3304 and 3305 to prohibit discrimination based on weight or height. 

(Amends Administrative Code ( lupter 12A Sections 12A.I. 12A.5, 12A.S. Chapter 12B Sections 12B.1. 
12B.2; Chapter 12C Sections 12C.1, 12C.3; amends Police Code Article 33 Sections 3303, 3304 and 3 : 
3/20/00, asmi INEDI M)i K 10 DAY Rl I E to Finance and I jhor ( ommittee, expire* on 4 19 2000 

Heard in Committee Speakers Supervisor tmmiano, Susan Frankel, Deputy City Attorney, Larry Brinken, 
Human Rights Commission, Marilyn Wane. Carole Cullum, Attorney at Law, RicardoGil, Tom Getter, 
Patricia Lyons, Nurse, Deboralyall, Arthur Jackson, Lauren Frazier, Dawn Atkins, Margaret Rossi, Laurie 
Addison. Esther Rothblum, Frances White, Elena Escalera Joyce Wermont Sandra Salazey, DebBurgard, 
Steven Currier, Cinney Selman, Dana Schiester, Supervisor Bierman 
RECOMMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



00066^ [Taxi Industry Fund| 

Ordinance amending Article XIII of Chapter 10 of Part I of the San Francisco Municipal Code (Administrative 
Code) by adding Section 10.1 17-28, to create a Taxi Industry Fund (Taxi Commission) 

(Adds Section 10.117-28.) 

4/12/00, Rl i NVI D AND ASSN iNEDtol (nance ind I abor Committee 

4/18/00, SUBS M n ill) Substituted l>) I it> Attome) 4 1 8/00, bearing new title 
4/18'uO, ASSIGNED to Finance and Labor Committee 

Heard in Committee Speakers Ken Bruce, Budget Analyst, Officer Farrell Suslow, Taxi Commission, 
Supervisor Yee, Tom Owen. Deputy City Attorney, Ed Harrington, Controller 
CONTINUED TO CALL OF THE CHAIR bv the following vote: 

Ayes: 3 - Yee, Bierman, Ammiano 



000566 |Lease of Property for DPH Southeast Child Family Therapy Center] 

Resolution authorizing the lease of real property at 4527 Mission Street for the Department of Public Health. 
(Real Estate Department) 

0, RECEIVED AND ASSIGNED to Finance and Labor Committee 
Heard in Committee Speakers Ken Bruce. Budget Analyst, Tony DeLucchi, Real Estate Department; Sai- 
Ling Chang-Sew. Department of Public Health 
RECOMMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



Cirv and Count}' of San Francisco 



Printed at 11 :S2AM on 5/4.V0 



Finance and Labor Committee 



Meeting Minutes 



May 3, 2000 



000723 [Fiscal Year 2000-2001 Budget Proposal for District Offices] 
Supervisor Ammiano 

Motion recommending the submittal of the draft Fiscal Year 2000-2001 budget for district offices to the 
Finance and Labor Committee for its review and recommendations to the Board. 
4/17/00, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Ken Bruce, Budget Analyst; Gloria Young, Clerk of the Board; Supervisor 
Ammiano; Supervisor Yee; Supervisor Bierman. 
RECOMMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



000691 [Reserved Funds, DTIS[ 

Heanng to consider release of reserved funds. Department of Telecommunications and Information Services, 
(Fiscal Year 1999-2000 Budget - Court Management System), in the amount of 51,342,659 for the 
development of the JUSTIS system intended to replace the aging cable system that the criminal justice 
departments have been using for many years. (Telecommunications and Information Services) 
4/14/00, RECEIVED AND ASSIGNED to Finance and Labor C immittee. 

Heard in Committee. Speakers: Ken Bruce, Budget Analyst; Liza Loweiy, Executive Director, Department of 
Telecommunications and Information Sendees (DTIS); Supervisor Yee; Ed Harrington, Controller; Supenisor 
Ammiano. 

APPROVED AND FILED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



ADJOURNMENT 

The meeting adjourned at 3:30 p. m. 



City and County of San Francisco 



Printed at 11:52 <W on W 00 



3 
'3/00 



CITY AND COUNTY 




[Budget Analyst Report] 

Susan Horn 

Main Library-Govt. Doc. Section 



OF SAN FRANCISCO 



^BOARD OF SUPERVISORS 

BUDGET ANALYST 

1390 Market Street, Suite 1025, San Francisco, CA 94102 (415) 554-7642 
FAX (415) 252-0461 

DOCUMENTS DEPT 



April 27, 2000 

TO: , Finance and Labor Committee 

FROM: ^Budget Analyst 

SUBJECT: May 3, 2000 Finance and Labor Committee Meeting 
v 

Item 2 - File 00-0738 



MAY - 2 2000 

SAN FRANCISCO 
PUBLIC LIBRARY 



Department: 
Item: 

Amount: 
Source of Funds: 
Description: 



Department of Children, Youth and Their Families (DCYF) 

Hearing to consider the release of reserved funds in the amount 
of $350,000 for the implementation of the School-Based Health 
Pilot Project. 

$350,000 

FY' 1999-2000 DCYF budget 

This request would authorize release of $350,000 reserved in the 
FY 1999-2000 budget review by the Board of Supervisors for the 
School-Based Health Pilot Program. During the FY* 1999-2000 
budget review, the Board of Supervisors reserved $550,000 for 
the School-Based Health Pilot Program, pending submission of 
program and budget details, and obtaining a revenue 
contribution from the San Francisco LTnified School Districl 
(SFUSD). In January of 2000, the Board of Supervisors 
authorized release of $200,000 of the $550,000 reserved funds 
(File No. 00-0001), retaining $350,000 on reserve, pending the 
submission of further program and budget details. 



Memo to the Finance and Labor Committee 

May 3, 2000 Finance and Labor Committee Meeting 



DCYF and the School Health Task Force 1 are now proposing that 
the requested $350,000 in reserved funds, plus the $200,000 
previously released which has not been expended, for a total of 
$550,000, be used for the implementation of two Wellness 
Centers at two high schools, Lincoln and Galileo High Schools. 
The proposed Lincoln High School Wellness Center would 
include on-site substance abuse and mental health prevention, 
counseling and treatment services. In addition, the Lincoln High 
School Wellness Center would provide physical health services, 
such as physical exams and sports physicals, through the School 
Health Programs Department School Health Center, a full- 
service clinic located across the street. According to M< Nam 
Coloretti of DCYF, the School Health Task Force anticipates th.it 
approximately 245 Lincoln High School students \vi>uld receive 
services each month at the school si; 



Budget: 



The Galileo High School Wellness Center would provide ph- 
health assessment clinic services and augment on-site mental 
health services currently offered. According to Ms. Coloretti. the 
School Health Task Force anticipates th.it 276 Galileo High 
School students would receive Wellness Center services each 
month. 

The total proposed budget for the two Wellness Centers is 
$756,866. Of that amount, $550,000 would be City funds. 
including the subject reqi; release of $350,000 plus 

$200,000 released previously and not aded. Additionally. 

SFUSD would contribute $206,84<; in in-kind services, for 
program costs of $756,866. 

The proposed summary budget, which includes $550,000 
budgeted in the FY 1999-2000 DCYF budget and $206,846 
contributed by SFL T SD, for a total budget of $756,846, is as 
follows: 





DCYF SFUSD 


Total 


DPH and SFUSD Staff 
Contractual Staff 

Subtotal, Staff Costs 
Operating Costs 


S428.250 
79.475 


5206,846 




507.725 


Total Costs 1 $550,000' $206,846i $756,846 



1 DCYF convened the School Health Task Force, which consists of 17 members, including 
representatives from Department of Public Health (DPH). the SFUSD. and private and public agencies, 
in August of 1999 to develop a proposal for the School Based Health Pilot Program. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

2 



Memo to the Finance and Labor Committee 

May 3, 2000 Finance and Labor Committee Meeting 



Comments: 



The Attachment, provided by DCYF, contains details to support 
the summary budget noted above for proposed DCYF 
expenditures of $550,000 and SFUSD in-kind expenditures of 
$206,846. 

1. According to Ms. Coloretti, the proposed DCYF budget of 
$550,000 would fund 6.6 new FTEs in SFUSD, plus 0.4 FTE 2232 
Senior Physician Specialist in the Department of Public Health 
(DPH) to serve as a medical consultant to the Wellness Centers, 
and two DPH service contract positions. 



Position Description 


Salaries, Fringe 


SFUSD Positions 


Benefits, 

Contractual 

Services 


Site Coordinator (2.0 FTE) 

Manages and coordinates staff and school-linked services at 
each school site; refers students to appropriate provider; 
maintains documentation for revenue reimbursement. 


596,250 


Community Health Worker (2.0 FTE) 

Makes appointments; assists students in connecting with 
providers and community resource referrals; assists with 
records and billings. 


90,000 


Mental Health Counselor (2.0 FTE) 

Provides counseling, therapeutic and crisis intervention. 


120,000 


School District Nurse (0.4 FTE) 

Conducts general triage, assessment, counseling, and 

health education and prevention and skill building 

programs. 


22,000 


Nurse Practitioner (0.4 FTE) 

Conducts Medi-Cal required health exams, other physical 

exams, and sports physicals. 


45,000 


Subtotal, SFUSD 


$373,250 


DPH Position and Contractual Services 


Senior Physician Specialist (0.4 FTE ) 

Serves as a medical consultant to the Wellness Centers; 

provides protocols, reviews procedures, consults on cases 


55,000 


Substance Abuse Counselor, DPH Contractual Services (0.5 

FTE) 

Provides individual and group education, counseling, and 

treatment for students. 


27,500 


Contractual Mental Health Counselor, DPH Contractual 
Services (1.0 FTE) 


51,975 


Subtotal, DPH 


134,475 


Total 


$507,725 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

3 



Memo to the Finance and Labor Committee 

May 3, 2000 Finance and Labor Committee Meeting 

2. Ms. Coloretti states that DPH plans to (a) use existing 
physician staff to provide Senior Physician Specialist services 
and (b) add to existing DPH contracts to provide the Mental 
Health Counselor and Substance Abuse Counselor services, 
which are school-linked. As previously noted, the proposed 
SFUSD positions, totaling 6.6 FTE, are new positions. 

3. According to Ms. Coloretti, DCYF expects to spend $60,000 of 
$550,000 in FY l!»!»!t-2000 for program start-up costs at Lincoln 
and Galileo High Schools and carry forward $490,000 for these 
programs m FY 2000-2001. Ms. Coloretti states that DCYF has 
budgeted $1,400,000 in FY 2000-2001 for school-based health 
programs, of which $40,000 would be allocated for the subject 
programs at Lincoln and Galileo High Schools. 

Recommendation: Approve the requested release of reserved funds. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

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Memo to Finance and Labor Committee 

May 3, 2000 Finance and Labor Committee Meeting 

Item 3 - File 00-0524 



Note: This item was continued by the Finance and Labor Committee at its 
meeting of April 26, 2000. 



Department: 



Public Utilities Commission (PUC) 
Hetch Hetchy Water md Power 



Item: 

Amount: 
Source of Funds: 

Description: 



Resolution authorizing the expenditure of funds for 
emergency repair of corrosion in the San Joaquin Pipeline 
No. 3 of the Hetch Hetchy Aqueduct. 

$4,210,000 

Hetch Hetchy Project No. CUH762 San Joaquin Pipeline 
Repair. (See Comment No. 6 for detail-) 

( >n November 19. 1999, the President of the Public Utilities 
Commission (PUC) declared the existence of an emergency 
condition requiring immediate repairs to the San Joaquin 
Pipeline No. 3 of the Hetch Hetchy Aqueduct. As stated in 
the Attachment to this report, provided by the PUC, the 
San Joaquin Pipeline No. 3 is corroded at approximately 
176 sites The PUC advises that this corrosion, if not 
repaired, could lead to a pipeline rupture, potentially 
endangering adjacent parallel pip. •lines ind the foundation 
of the Hetch Hetchy Water Transmission Line. 

The subject resolution would authorize the PUC to expend 
$4,210,000 to repair the San Joaquin Pipeline No. 3 on an 
emergency basis. The PUC reports, as stated in the 
Attachment, that it has selected two separate contractors to 
complete the repairs, Mendelian Construction Company 
and Shimmick Construction Company, in order to expedite 
the construction and avoid interfering with scheduled water 
deliveries. According to Everett Hintze of the PL'C. the 
PUC selected Mendelian Construction because the company 
dready doing work in the area when the original 
emergency was declared, as stated in the Attachment. Mr. 
Hintze advises that the PUC decided to hire a second 
construction company in order to ensure that repairs were 
completed as quickly as possible. Mr. Hintze advises that 
the PUC selected Shimmick Construction from a list of four 
construction companies that had expressed interest in 

BOARD OF SUPERVISORS 

BUDGET ANALYST 

6 



Memo to Finance and Labor Committee 

May 3, 2000 Finance and Labor Committee Meeting 



doing the work. According to Mr. Hintze, all four 
construction companies had been awarded past contracts 
with the PUC and proven themselves to be reliable and 
efficient. In addition, according to Mr. Hintze, the potential 
cost of hiring each firm would differ little since the contract 
would be based on time and materials, and since the PUC 
would use a pre-established mark-up for overhead and 
profit, as stated in the Attachment. Mr. Hintze advises that 
the PUC selected Shimmick because the firm had not been 
awarded recent emergency repair construction contracts 
with the PUC, while the other three companies are 
presently engaged performing work under such emergency 
contracts. (See Attachment for additional details on the 
contractor selection process.) 

Mr. Hintze advises that both Mendelian Construction and 
Shimmick Construction will be paid on a time and 
materials basis under the direction of PUC Utilities 
Engineering Bureau (UEB) staff engineers, as stated in the 

Attachment. 



Budget: 



A summary budget for 
$4,210,000 is as follows: 



the estimated project costs of 



Construction Contracts 




Mendelian Construction (See Comment No. 2) 




Repairs for approx. 26 sites (work completed) 




Total Initial Contract 


$500,000 


Mendelian Construction 




Repairs for approx. 75 sites 


1,500,000 


Shimmick Construction 




Repairs for approx. 75 sites 


1.500.000 


Total Construction Contracts 


S3.500.000 


PUC Utilities Engineering Bureau 


350,000 


Contingencies 


360,000 


Total 


$4,210,000 



See Comment No. 4 for further budget details. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

7 



Memo to Finance and Labor Committee 

May 3, 2000 Finance and Labor Committee Meeting 

Comments: 1. On December 19, 1999 the PUC ratified the November 

19, 1999 Declaration of Emergency made by the President 
of the Commission. 

2. According to Mr Hintze, the PUC first discovered the 
corrosion of the San Joaquin Pipeline No. 3 on November 
19, 1999. The PUC hired Mendelian Construction 
Company, which was already doing work in the area, to 
repair the corrosion at approximately 26 sites along the 
Pipeline, on a time and materials basis, not to exceed 
$500,000. As work progressed, the PUC discovered that 
damage Co the Pipeline was far more extensive than 
previously known, with emergency repairs needed at 
approximately L50 additional sites along the Pipeline, for a 
total of approximately L76 sites The PUC thus increased 
it- estimates for construction costs to repair the total of 
approximately L76 corroded sites along the Pipeline to 

00,000 ($500,000 for the repair of 26 initial sites plus 
$3,000,000 to repair the additional 150 corroded sites.) On 
March 1 1. -!000, the PUC approved the revised total 

mated cost of $ i -10,000 to repair the approximate total 
ofl76corrod tlong t he San Joaquin Pipeline. 

3. According to Mr. Hi] f the approximate 176 -un- 
identified with corrosion have already been repaired by 
Mendelian Construction at a cost of $499,842 (See 
Comment No. 4 for details). Mr. Hintze advises that the 
IM'C has already paid to Mendelian Construction a total of 
$499,842 for these repairs. 

4. The PUC estimates that each of the 150 sites in the San 
Joaquin Pipeline identified with corrosion, in addition to 
the 26 sites already repaired, will cost approximately 
$20,000 to repair, for a total estimated $3,000,000 in 
construction c 1,000 times 150 sites), as stated in the 
Attachment According to Mr. Hintze, the actual cost for 
repairs is difficult to estimate since the cost can vary 
significantly from site impending on the amount of 
corrosion discovered once the affected areas of the Pipeline 
are excavated. Therefore. Mr. Hintze advises that the cost 
estimate of $20,000 per site is based on costs already 
incurred to repair 26 sites that Mendelian Construction has 
completed. A summary of these costs is as foil 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

8 



Memo to Finance and Labor Committee 

May 3, 2000 Finance and Labor Committee Meeting 



Costs Billed for 26 Completed Repairs 




Labor 

Equipment & Materials 

Subcontractors 

Bond Premium 


$182,465 

187,558 

118,819 

11,000 


Total Costs to Date 


$499,842 


Average Cost Per Repair 


$19,225 



5. Mr. Hintze advises that the initial contract with 
Mendehan is not to exceed $500,000. Mr. Hintze reports 
that the additional construction contracts with Mendelian 
Construction and Shimmick Construction are not to exceed 
a total $3,000,000, for total construction costs of 
$3,500,000. 

6. According to Mr. Carlos Jacobo of the PUC, since Fiscal 
Year 1985-1986, a total of $18.3 million has been 
appropriated to Hetch Hetchy's Project CUH762, San 
Joaquin Pipeline Repairs. Mr. Jacobo reports that the 
current unexpended balance of this project budget is $4.3 
million (as of March 31, 2000). 

7. The PUC has provided the Budget Analyst with a copy of 
the Human Rights Commission letter of certification 
verifying that Mendelian Construction is a Minority Owned 
Business Enterprise (MBE). According to Mr. Hintze, 
Shimmick Construction is not a Minority/Woman Owned 
Business Enterprise. 

8. According to Mr. Hintze, repairs began soon after the 
declaration of an emergency on November 19, 1999. Mr. 
Hintze reports that the PUC estimates that the majority of 
the repairs will be completed by November 1, 2000, as 
stated in the Attachment. Mr. Hintze advises that 
especially corroded sites on the San Joaquin Pipeline are 
too dangerous to repair when the Pipeline is at full 
pressure, and thus the two construction companies will 
have to wait until late Fall of 2000 to begin such repairs, 
when the Pipeline is scheduled to be closed for annual 
inspections and maintenance. Therefore formal completion 
of the entire project is scheduled for March 20, 2001. 



Recommendation: Approve the proposed resolution. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

9 




E. DENNIS NCRMANDY 
PREUDBfT 

VICTOR G. MAKKAS 
V7C£ PUfZlceNT 

FRANK L CCCK 
ANN MCUXR CAEN 
ASNCK XUMAR 3HATT 



Attachment 
Page 1 ot 4 



CITY AND COUNTY OF SAN FRANCISCO 

PUBLIC UTILITIES COMMISSION 

W1UJE l 3RCWN, JR., juxCX 
X*iH ?■ jwjujsnE. JR.. sfaeui *Muca 



SANFRANCSCO 
MTU DEPARTmENT 



HETCX METCTT 
WATCT AM) PCWtR 



sam nu.sc.sco 

CLEAN WATER PROGRAM 



DATE: 



Aoril 26, 2CC0 



TO: Ernilie Neumann 

Budget Analyst * 

FROM: Laurie Park ^jf^^ 

General Manager (Acting) 
Hetcb Hetchy Water and Power 

SUBJECT: Board of Sucervisors Item CC0524 

San Joaquin Pipeline No. 3 in Hetch Hetchy Aqueduct 
Emergency Repairs 

BACKGROUND 

On December 14, 1999, the Public Utilities Commission adopted PUC Resolution No. 99-0304 
the Declaration of Emergency made by the President of the Commission on November 19, 1999. and 
requesting the Mayor and Board of Supervisors to approve the expenditure of rands in the amount of 
$6 10,000 based upon the estimated scope of damage at that time. 

Prior to the November 19, 1999 Declaration of Emergency, an inspection of the pipeline was under: a 
during a scheduled shutdown of Pipeline No. 3 to locate leaks and make repairs. This work was being 
done following the discovery and repair of two small leaks dunng the summer of 1999. The inspection 
of the pipeline utilized an existing as-needed testing services contract, for which Mendehan Construction 
Company was a subcontractor. This work, which preceded the declaration of emergency, was budgeted 
at $200,000 of which to date approximately $90,000 has been expended. This work was entirely separate 
from the emergency work and included measuring electrical conductivity in the soil above the pipeline 
using an advanced radio freauency tesnng technique that detects anomalies, and ultrasonic testing of the 
pipe from the inside. 

The initial investigations identified approxirr. Q locations where urgent repairs needed to be 

made. Based upon this finding, the President of the Cornmission declared the existence of an emerge 
on November 19,1999. 



HETCH HETCHY WATER AND POWER 

1 :S£ MARKET STP.cST. 4TH FLOOR • SAN FRANCISCO. CA 3-r.Cj • («1S) S54-072S 



10 



Attachment 
Page 2 of L 



Memorandum from Laurie Dark to Emilie Neumann dated April 26, 2000 
Board of Supervisors Item 000524 

San Joaquin Pipeline No. 3 in Hetcfa Hetchv Aaueduct- Emergency Repairs 
Page 2 of 4 • 



FIRST EMERGENCY CONTRACT 

Immediately following the Declaration of Emergency, an emergency contract in the amount of $500,000 
was entered into with Mendelian Construction Company, a local HRC certified MBE. Mendelian was 
selected because they were doing work on another contract on the Pipeline at the time, and were already 
mobilized. Because the extent of the work could not be quantified, the contract was entered into on a 
time and materials basis, with a maximum amount of $500,000. The Human Rights Commission 
Contract Compliance Officer concurred with this selection. 

The scope of work to be performed by Mendelian included making repairs at the known sites and 
conducting testing to ensure that the new epoxy coatings were properly applied and free of pui holes 
through which corrosive chemicals could attack the underlying steel. Mendelian was able to repair ?6 
sites under the original $500,000 contract 

DISCOVERY OF MORE SERIOUS CORROSION AND MODIFICATION OF ESTIMATE 

The testing under the original $200,000 contract, outside of the emergency, continued. As the corros-on 
survey continued a total of 176 sites were identified as having severe corrosion problems. On March 14 
2000, following this discovery, the Commission adopted a new Resolution, No.00-0079 whi :h 
increased the amount for the emergency from $610,000 to $4,210,000. 

To address the repair of the 150 additional sites found to be seriouslv corroded Staff determined an 
adaitional $3,000,000 of contract work should be undertaken immediately to make repairs This was 
based upon the average cost of repairs of approximately $20,000 per location under the initial $>00 000 
Mendelian Contract. "' ' 

ENGAGING TWO CONTRACTORS TO EXPEDITE REPAIRS 

? SS^f" ±e rC?aar eff ° rt ' Staff decided :o le[ wo additional emergency contracts in the amount of 
il ,DUU,tXX3 each. Since the scope of work could not be quantified, the contracts entered into are based on 
time and materials with a pre-established markup for overhead and profit. (This markup is the standard 
markup used by Caltrans for work done on a time and materials basis. This arrangement,'perfonnin« the 
work on a closely monitored time and materials basis, is not a financial windfall for a contractor. The 
profit made by a contractor under such an arrangement is minimal.) By using two contractors,* work can 
take place from vvo separate headings, and can be performed more expeditiously. 

Staff proposed entering into a second contract with Mendelian for $1500,000 as Mendelian was already 
on site and was performing their work in a diligent, cooperative, and satisfactory manner 

A number of other contractors were contacted to determine interest. Four contractors who have en - 3 
m emergency contract work on the Hetch Hctchy and Water Department's maior transmission lines " 
snowed interest. 



HETCH HETCHY WATER AND PCWE3 

1 153 MARKET STHEH7, 4TH FLCCH . SAN RWNCISCO, CA 34'.C3 • (415) S54-072S 



11 



Attachment 
Page 3 of 4 

Memorandum from Laurie park to Emilie Neumann dated April 26, 20C0 
Board of Supervisors Iiem 000524 

San Joaquin* Piocline No. 3 in Hetch Hetchy Aqueduct- Emergency Repairs 
Page 3 of 4 

The four contractors approached were selected on the basis that they consistendy perform good work and 
meet schedules for contract work with the PUC, and have the equipment and experienced workers who 
can do the work efficienUy and effectively. 

PUC staff decided to award a SI, .500,000 contract to Shimmick Construction Comcany. The decision to 
award to Shimmjck was based upon the other three contractors wbo showed interest bavin" been 
awarded sizable PUC contracts in the recent past, and to give Shimmick a share of the emergency work. 
None of the three other bidders objected to this selecnon process. 

MBE/WBE SUBCONTRACTING PARTICIPATION 

Both SI. 5 million contracts have subcontracting goals of 13% for HRC certified local MBEs and 4<3> for 
local WBEs. The Human Rights Commission Contract Compliance Officer assigned to oversee Herch 
Hetchy contracts has approved die selection of the two con'raotors and the MBE/WBE subcontract: a •■» 
goals. 

CONTRACT DURATION 

Toe terms for the contracts were set at 365 days, commencing on March 20, 2000. The reason for this is 
that there are likely some locations where the corrosion is so severe that work cannot be undertaken 
safely while the pipeline is in service, and may have to be performed during a scheduled shutdown. 
Also, there is a strong likelihood that additional sites cf corrosion will be discovered dunn CT the next 
scheduled shutdown, and some of these repairs can be made under these contracts, assumin° funding has 
not been exhausted. The contractors are committed to work as diligently as possible. At the moment, 
production is being hampered by a high ground water table due to winter and spring rain, and irrigation 
taking place throughout the San Joaquin Valley. .Along much of the affected portion of the pieeiine, 
access is impossible due to the current muddy conditions. 

It is anticipated that most of the work will be completed well before November 1, 2000. When the 
pipeline is taken out of service later in the fall, the contractors will be able to comolete work at those 
locations where the corrosion is most severe and working en the pipeline at those locations while 
pressure could be hazardous. 

DESCRIPTION OF WORK AND MATERIALS USED 

Generally, the work consists cf excavating at each site where serious corrosion has been detected 
removing the original coal tar coating and disposing of it; removing the corrosion down to bright a 
welding steel plates over the affected area; applying an epoxy coating to protect the rice asaii; further 
corrosion at the site; and backfilling the excavation. 

Equipment used includes trucks, backhoes, electric arc aerators. Materials 

include steel plate, welding reds, and epoxy coating materials. 



HETCH HETCHY WATER AND FOWtS 
• : 15 MARKS7 STREET. *TH P-CCfl • SAN FRANCSCO, ZA '--i- C2 • 

12 



Attachment 
Page 4 of 4 

Memorandum from Laurie park to F.milie Neumann dated April 26, 2000 
Board of Sucervisors Irem 000524 

San Joaquin Pipeline No. 3 in Hetcfa Hereby Aqueduct- Emergency Repairs 
Page 4 of 4 



BUDGET AND EXPENDITURES 

During the performance of the 5500,000 contract by Mendeiian, 26 locations were repaired at an actual 
total cost of S499.842. Based on this, the average cost per loeaaon was 519,224.69. This was rounded to 
S20,000 per location for the purpose of arriving at an estimated figure of 33,000,000 for the 150 
locations to be repaired under the two S1.5 million contracts. 

Tne emergency budget is shown below: 

The total amount for the emergency work is estimated to be $4,210,000. This is broken down as follows: 

Original Additional Current 

Estimate Amount Estimate 

Construction Contracts $500,000 S3,000,0CO S3,50O,0OO 

UEB Services $50,CO0 $300,000 $350,000 

Contingencies S60 COO $300,000 $360,000 

TOTAL AMOUNT $610,000 $3,600,000 $4,210,000 

The total billin<* under the original construction contract with Mendeiian is broken down as follows: 

Amount% of Total 
Direct Labor $182,465 36.5% 

Subcontract Work $113,319 23.S% 

Materials and Equipment Rental $137,558 37.5% 

Bond Premium $11,000 2.2% 

TOTAL $499,842 100.0% 

If you have any further questions, please contact Mr. Everett Hintze at 554-0707 or Mr. Frank Mangold t 
554-0778. 



HETCH HE7CHY WATER AND POWER 

1 ',£5 MARKFT STREET. 4TH r'.CCR • SAN rH^CSCC. CA 941C3 • (415) 55^-372 

13 



Memo to Finance and Labor Committee 

May 3, 2000 Finance and Labor Committee Meeting 

Items 4 -11 - Files 00-0432. 00-0433. 00-0434. 00-0435. 00-0436. 00-0437. 00- 
0438. 00-0439 

Note: These items were continued by the Finance and Labor Committee at 
its meeting of April 26, 2000. 

Department: , Treasurer /Tax Collector 

Items: File 00-0432: Ordinance amending Part III, Article 

3, Section 250 of the San Francisco Municipal Code, 
to except certain transient merchants, that operate 
it Moscone Center or the Bill Graham Civic 
Auditorium and agree to comply with all the City 
and County of San Francisco's rules, from the 
licensing and fee requirements otherwise 
applicable to transient merchants under Article 3; 
and enabling enforcement by means of citation. 

File 00-0433: Ordinance amending Pari III. Article 
3, Section 2~>\ of the San Francisco Municipal Code 
to define the term temporary business to mean a 
business conducted for less than seven days and 
excluding pumpkin sellers from the definition of 
transient merchant. 

File 00-0434: Ordinance amending Part III. Article 
3, Section 252 of the San Francisco Municipal Code 
to except certain transient merchants, that operate 
at Moscone Center or the Bill Graham Civic 
Auditorium and agree to comply with all the City 
and County of San Francisco's rules, from the 
requirement that they apply for a license under 
Article 3. 

File 00-0435: Ordinance amending Part III. Article 
3, Section 253 of the San Francisco Municipal Code 
to reduce the fees payable by transient merchants 
during the suspension period described below. 

File 00-00436: Ordinance amending Part III. 
Article 3. Section 254 of the San Francisco 
Municipal Code to exempt those certain transient 
merchants, that operate at Moscone Center or the 
Bill Graham Civic Auditorium and agree to comply 
with all the City and County of San Francisco's 
rules, from the tax return filing requirement 
otherwise applicable to transient merchants under 
Article 3 and to exempt all other transient 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

14 



Memo to Finance and Labor Committee 

May 3, 2000 Finance and Labor Committee Meeting 

merchants from such tax return filing requirements 
during the suspension period. 

File 00-0437: Ordinance amending Part III, Article 
3, Section 255 of the San Francisco Municipal Code 
to exempt those certain transient merchants, that 
operate at Moscone Center or the Bill Graham 
Civic Auditorium and agree to comply with all the 
City and County of San Francisco's rules, from the 
bonding requirement otherwise applicable to 
transient merchants under Article 3. 

File 00-0438: Ordinance amending Part III, Article 
3, Section 257 of the San Francisco Municipal Code 
to eliminate the penalty on transient merchants 
that violate the provisions of Article 3 during the 
suspension period. 

File 00-0439: Ordinance amending Part III, Article 
3, Section 258 of the San Francisco Municipal Code 
to exempt those certain transient merchants, that 
operate at Moscone Center or the Bill Graham 
Civic Auditorium and agree to comply with all the 
City and County of San Francisco's rules, from the 
licensing requirements otherwise applicable to 
transient merchants under Article 3. 

Description: The eight proposed ordinances would address City 

regulations concerning transient merchants, which 
are currently denned in Part III, Article 3, Section 
251 of the City's Administrative Code (See File 00- 
0433 below). Currently, the City (1) requires 
transient merchants to obtain quarterly licenses 
from the City; (2) requires transient merchants to 
pay $500 quarterly license fees to the City, (3) 
requires all transient merchants to obtain a $5,000 
financial bond, (4) requires transient merchants to 
file quarterly reports with the City; (5) imposes a 
Gross Receipts Tax of ten percent on transient 
merchant's gross sales which exceed $5,000, and (6) 
imposes certain criminal sanctions for failure to 
comply with these provisions. All of the proposed 
ordinances would amend existing Sections of the 
City's Administrative Code, except one of the 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

15 



Memo to Finance and Labor Committee 

May 3, 2000 Finance and Labor Committee Meeting 



proposed ordinances (File 00-0439), which would 
add a new Section 258 to the Administrative Code. 

File 00-0439: Under this new proposed Section 258, 
those transient merchants who lease space at 
either Mo-cone Center or the Bill Graham Civic 
Auditorium, and meet the requirements of the City 
by entering into a License Agreement with San 
Francisco ("(invention Facilities, would be exempt 
from (1) applying for a transient merchant license, 
btaining a transient merchant license, or (3) 
.uning a financial bond, and therefore would be 
exempt from all the transient merchant 
requirements, including the transient merchant- 
quarterly license fee, as established in the City's 
Administrative Code. All of these new provisions 
would be in effect during a proposed suspension 

riod, which would extend from the effective d 
of this ordinance to 30 days after the Board of 
Supervisors repeals the ordinance. 

File 00-00432: Currently. Section 250 of Article 3 of 
the City's Administrative Code requires all 
transient merchants to obtain a license from the 
City. The proposed ordinance would amend thi> 
requirement to exempt those transient merchants 
covered by the new Section 258 discussed above, 
that lease -pace at Moscone Center or Bill Graham 
Civic Auditorium. In addition, the proposed 
ordinance would require that such license 
provisions for other transient merchants be 
enforced by the issuance of administrative 
citations. 

File 00-00433: Currently. Section 251 of Article 3 of 
the City's Administrative Code defines transient 
merchants as any person, firm or corporation who 
agag - in a temporary business of selling and 
delivering goods, wares and merchandise, other 
than food or food products, within the City, and 
hires, leases, uses or occupies any building. 
structure, shop. tent, railroad boxcar, boat or room 
in any hotel, motel, auto court or apartment for the 
exhibition and sale of such goods, wares and 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

16 



Memo to Finance and Labor Committee 

May 3, 2000 Finance and Labor Committee Meeting 

merchandise. This transient merchant definition 
specifically excludes (a) persons, firms or 
corporations who exhibit samples only for the 
purpose of securing orders for future delivery, (b) 
sales at public auctions regulated by the provisions 
of the Police Code and Part III of the Municipal 
Code and (c) the sale of Christmas trees. The 
proposed ordinance would also exclude the sale of 
pumpkins from these transient merchant 
requirements. In addition, the proposed ordinance 
would define "temporary business" to mean a 
business conducted for less than seven days in any 
calendar year and would require that any business 
conducted for seven days or more in any calendar 
year obtain a Business Tax Registration 
Certificate. 

File 00-0434: Currently, Section 252 of Article 3 of 
the City's Administrative Code contains the 
requirements for applying for a transient merchant 
license. The proposed ordinance would make non- 
substantive clarifying changes to these existing 
requirements. 

File 00-0435: Currently, Section 253 of Article 3 of 
the City's Administrative Code requires that all 
transient merchants pay (1) a minimum quarterly 
fee of $500 for a license and (2) a Gross Receipts 
Tax of ten percent of gross receipts in excess of 
$5,000 per quarter. The proposed ordinance would 
(1) reduce the transient merchant quarterly license 
fee from $500 to $150, a reduction of $350, or 70 
percent, and (2) eliminate the Gross Receipts Tax 
for transient merchants, who lease space at 
locations other than Moscone Center and the Bill 
Graham Civic Auditorium, during the suspension 
period. As noted previously, under the new Section 
258 (File No. 900-0439) transient merchants who 
lease space at the Moscone Center and the Bill 
Graham Civic Auditorium are exempt from the 
transient merchant requirements, including the 
transient merchant quarterly license fee. Also, the 
suspension period would extend from the effective 
date of the new Section 258 (File 00-0439) to 30 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 3, 2000 Finance and Labor Committee Meeting 

days after the Board of Supervisors repeals that 
ordinance. 

File 00-0436: Currently, Section 254 of Article 3 of 
the City's Administrative Code (1) requires 
transient merchants to fil«- quarterly reports with 
the Tax Collector's Office containing the amount of 
gross receipts received and (2) authorizes the Tax 
Collector's Office to examine the records of these 
transient merchants to verify the accuracy of the 
quarterly reports md/or to ascertain the amount of 
fees and taxes owed to the City. The proposed 
ordinance would eliminate the requirement thai 
transient merchants need to file these quarterly 
reports or pay such taxes to the City during the 
suspension period, which is noted above. 

File 00-0437 : Currently, Section 2.").") of Article 3 of 
the City's Administrative Code requires that before 
the quarterly license can be issued by the City, all 
transient merchants must file a So, 000 bond with 
the Tax Collector's Office to cover potential injuries 
or losses thai may be sustained. The proposed 
ordinance would amend Section 255 to provide that 
only those transient merchants that are required to 
obtain a quarterly license be required to post the 
000 bond. Since under the proposed 
amendments, transient merchants at Moscone 
Center and Bill Graham Civic Auditorium would be 
exempt from the licensing requirements, those 
transient merchants would also be exempt from 
these bonding requirement- 

File 00-0436: Currently. Section 257 of Article 3 of 
the City's Administrative Code states that any 
person that violates any of the provisions of Article 
3, as described above, would be guilty of a 
misdemeanor and upon conviction would be 
punished by a fine of not more than $500 or 
imprisonment for not more than six months or 
both. The proposed ordinance would eliminate 
these criminal sanctions during the suspension 
period. As noted above (File 00-0432). the 
provisions of Article 3 would be enforced by the 
issuance of citations. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

18 



Memo to Finance and Labor Committee 

May 3, 2000 Finance and Labor Committee Meeting 



Comments: 



1. Ms. Susan Leal, the City Treasurer, advises that 
Mr. Jack Moerschbaecher, the City's Convention 
Facilities Director and Mr. John Marks, President 
of the San Francisco's Convention and Visitors 
Bureau approached the Tax Collector's Office to 
propose the requested changes to the City's 
Administrative Code regarding excluding transient 
merchants at Moscone Center and Bill Graham 
Civic Auditorium from the City's transient 
merchants requirements. As indicated in a letter 
dated October 12, 1999, from Mr. Moerschbaecher 
to Ms. Susan Leal (Attachment I), Mr. 
Moerschbaecher reports that Convention Center 
customers have expressed concern about 
application of the transient merchant tax to 
merchants who have exhibits at trade shows and 
conventions. According to Mr. Moerschbaecher, the 
San Francisco Convention and Visitors Bureau and 
Moscone Center "have received numerous 
communications (from Convention Center 
customers) protesting the potential application of 
this tax to their shows". Mr. Moershcbaecher 
states that, if 17 Convention Center customers who 
have expressed concern about paying the tax were 
to transfer their business to other cities, the City 
would lose an estimated $4,300,000 in Convention 
Center revenues. Additionally, Mr. Moershcbaecher 
states that a survey of 9 cities, including 7 
California cities (Anaheim, Burbank, Fresno, Los 
Angeles, San Diego, San Jose, and Santa Clara), 
Portland, Oregon, and Las Vegas, Nevada, shows 
that none of the 9 cities impose a transient 
merchant tax. 



2. Under the proposed ordinance (File 00-0439), a 
transient merchant would be exempt from these 
regulations, if the merchant leases space at either 
Moscone Center or Bill Graham Civic Auditorium 
and enters into a License Agreement for San 
Francisco Convention Facilities. According to Mr 
Moerschbaecher. the existing Lic< nse Agreements 
are required to be signed by all show producers who 
occupy space at Moscone Center or Bill Graham 
Civic Auditorium. Mr. Moerschbaecher advises that 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 3, 2000 Finance and Labor Committee Meeting 

this License Agreement obligates such show 
producers to comply with all City government rules 
and requirements, as well as the Operator's Rules 
and Regulations, the San Francisco Convention 
Facilities Public Safety and Fire Management Plan 
and the Handbook for Meeting Planners and Show 
Managers. Mi Moerschbaecher reports that in FY 
L999-2000, the City is estimated to receive 
$7,067,000 from the License Agreement fees at 
Moscone Center and Bill Graham Civic 
Auditorium According to Mr. Moerschbaecher, 
Buch revenues are deposited into the Convention 
Facilities Fund and are used (a) to make debt 
service payments on Moscone Center, which in FY 
1999-2000 are estimated to be $19,877,000, and (b) 
to pay for tin- operating and maintenance CO 

me Center and Bill Graham Civic 
Auditorium, which in FY* 1999-2000 are estimated 
to be $15,151,000. The License Agreement fees are 
not the subject of the proposed ordinance and 
would remain unchanged. As noted previously. 
under the proposed ordinance the transient 
merchant quarterly license fee would apply only to 
transienl merchant.- leasing space at locations 
other than Moscone Center and Bill Graham Civic 
Auditorium, and would be reduced from $500 per 
quarter to $150 per quarter (Files No. 00-0435 and 
00-0 I 

3. Mr Doug Neilson of the Convention and Visitors 
Bureau reports that the subject transient merchant 
tax has been "sporadically enforced, at best, for 
many years". Additionally. Mr. Xielson states that 
convention and trade show organizers have opposed 
the transient merchant tax, as shown in the 
attached memorandum (Attachment II). 

4. As noted above, under the proposed ordinance 
(File 00-0433), a transient merchant would be 
defined as a business conducted for less than seven 
days in any calendar year and would require that 
any business conducted for seven days or more in 
any calendar year obtain a Business Tax 
Registration Certificate. Ms. Leal advises that the 
reduction of the $500 license fee to the proposed 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

20 



Memo to Finance and Labor Committee 

May 3, 2000 Finance and Labor Committee Meeting 

$150 license fee is consistent with the average cost 
for the City's Business Tax Registration Certificate. 
Ms. Leal also advises that the existing transient 
merchant regulations which require payment of a 
ten percent Gross Receipts Tax on receipts of over 
$5,000 are proposed to be eliminated because these 
regulations are extremely labor intensive and 
practically unenforceable for the Tax Collector's 
Office. 

5. The Treasurer/Tax Collector reports that in FY 
1998-99, the Tax Collector's Office collected a total 
of $41,234 from quarterly license fees and Gross 
Receipts Taxes from transient merchants, and that, 
as of March 31, 2000, the Tax Collector's Office has 
received approximately $16,000 from transient 
merchant fees and taxes for FY 1999-2000. Based 
on revenues for the first 9 months of FY 1999-2000, 
the Budget Analyst projects a total of 
approximately $21,333 on an annualized basis. 
According to the Treasurer/Tax Collector, prior to 
FY 1998-99, the City did not aggressively enforce 
the provisions of Article 3 regarding transient 
merchants. As a result, the Treasurer/Tax Collector 
estimates that the City's collections from transient 
merchants prior to FY 1998-99 were approximately 
$3,000 annually. 

6. Approval of the proposed ordinances would (a) 
exempt the transient merchants who lease space at 
Moscone Center or Bill Graham Civic Auditorium 
from the existing transient merchant license 
requirements, including quarterly license fees, (b) 
eliminate the Gross Receipts tax, and (c) reduce the 
quarterly license fee from the current $500 per 
quarter to $150 per quarter for transient 
merchants who lease space at locations other than 
Moscone Center and the Bill Graham Civic 
Auditorium. The Treasurer/Tax Collector estimates 
that the City would receive a total of approximately 
$1,500 annually (from an estimated L0 transient 
merchants, who occupy space at locations other 
than the Moscone Center or Bill Graham Civic 
Auditorium, times $150). The Treasurer/Tax 
Collector expects that the City will reci 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

21 



Memo to Finance and Labor Committee 

May 3, 2000 Finance and Labor Committee Meeting 

additional quarterly license fee revenues, in 
addition to the estimated $1,500 annual revenues 
noted above, due to increased ability to collect such 
fees resulting from the automation of the collection 
system. The Treasurer/Tax Collector is not able to 
provide an estimate of the additional revenues at 
this time. 

7. As noted in Attachment III. provided by the 
Treasurer, the transient merchant revenues to the 
City in FY 1997-98 were $3,020. in FY 1998-99 
were $41,234 38, and in FY 1999-2000, as of March 

31, 2000, are $16,006.31. As noted above, under 
the proposed ordinances, projected revenue^ in FY 
2000-2001 would be approximately $1,500 
annually, plus any additional revenues resulting 
from automation of the collection system. 

In FY 2000-2001 transient merchant revenues 
could be reduced by approximately $19,833 
annually, from the Budget Analyst's projected FY 
L999-2000 revenu 1.333 (Comment No. 5) to 

proximately $1,500. However, the Budget 
Analyst notes that data on transient merchant 
revenues, including quarterly license fees and 
Gross Receipts I historically limited, and 

therefore, actual reductions in revenues resulting 
from the proposed ordinances could vary from the 
projected amount. 

8. According to the Treasurer/Tax Collector, the 
Tax Collector's Office expects to reallocate staff 
time to other more significant revenue collection 
activities. such as unregistered business 
compliance activity, if less staff time is required to 
enforce the transient merchant requirements, 
including reporting and paying tax on gross 
receipts. As stated in Attachment III, although the 
Tax Collector's Office does not have specific 
dedicated staff for transient merchant activiti 
staff time and c ilting from Tax Collector 

Investigators enforcing the existing transient 
merchant ordinances. Licensing staff issuing 
transient merchant licenses. and Cashiers 
processing the payments, would be reduced. 

BOARD OF SUPERVISORS 

BUDGET ANALYST 

22 



Memo to Finance and Labor Committee 

May 3, 2000 Finance and Labor Committee Meeting 

Additionally, Attachment III states that "it is 
anticipated that we will recognize further cost 
savings and enhanced collections due to the 
redeployment of investigators, who will be able to 
concentrate on potentially more lucrative 
investigation activities". 

9. As stated in File 00-0432, the proposed ordinance 
would require that the provision to obtain a 
transient merchant license would be enforced by 
administrative citation. According to Mr. George 
Putris, Tax Administrator, the proposed 
administrative citation program is currently being 
developed. Mr. Putris states that actual fines have 
not yet been determined but that the proposed 
administrative citation program would be a minor 
source of revenue to the City. Mr. Putris states 
that, under the proposed administrative citation 
program, Tax Collector Investigators would be 
authorized to issue citations and handle them 
administratively. 

Summary: Currently, the City requires all transient 

merchants to (a) pay $500 quarterly license fees to 
the City, (b) obtain a $5,000 financial bond, (c) file 
quarterly reports with the City, (d) pay a Gross 
Receipts Tax of 10 percent on transient merchant's 
gross sales which exceed $5,000. Additionally, the 
Administrative Code imposes certain criminal 
sanctions for failure to comply with these 
provisions. 

Approval of the proposed ordinances would exempt 
transient merchants who lease space at either the 
Moscone Center or Bill Graham Civic Auditorium 
from all the transient merchant requirements 
noted above, including the quarterly license fee. 
Additionally, for transient merchants who Lease 
space at locations other than the Moscone Center or 
Bill Graham Civic Auditorium, approval ol' the 
proposed ordinances would (a) reduce the quarterly 
license fee payable by the transient merchants to 
the City from $500 per quarter to $150 per quarter, 
(b) eliminate the Gross Receipts Tax, (c) eliminate 
the requirement that transient merchant.- file 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 3, 2000 Finance and Labor Committee Meeting 

quarterly reports with the Tax Collector's Office 
containing the amount of gross receipts received, 
and (d) provide for enforcement of the 
Administrative Code provisions governing 
transient merchants by the issuance of 
idministrative citations. 

All of these new provisions would be in effect 
during a proposed suspension period, which would 
;end from the effective date of this ordinance to 
30 davs after the Board of Supervisor- repeals the 
ordinance. 

According to the Treasurer/Tax Collector, in FY 
L997-1998 the City collected $3,020 in transient 
merchant quarterly license fees and Gross Receipts 
taxes. In FY 1998-1999 the City collected $41 ! 
and in FY 1999-2000, as of March 31, 2000, the 
City ha- collected $16,006 in such fee.- and taxes. 
Under the proposed ordinances, the City would 
only collect the quarterly license fees from 
transient merchant.- who lease -pace at locations 
other than Moscone Center and Bill Graham Civic 
Auditorium. The Treasurer/Tax Collector estimates 
that annual revenues from such fee.- would be 
approximately $1,500, plus additional revenues 
resulting from automation of the quarterly license 
fee collection system. The Budget Analyst proj< 
FY 2000-2001 transient merchant revenues of 
1,333, based on revenues of $16,006 collected in 
the first 9 months of the fiscal year. Therefore, 
upon approval of the proposed ordinances, 
transient merchant revenues from quarterly license 
fees could be reduced by approximately $19,833 
annually, from the Budget Analyst's projected FY" 
1999-2000 revenu-s of $21,333 to approximately 
$ 1.500. However, the Budget Analyst notes that 
data on transient merchant revenues, including 
quarterly license fees and Gross Receipts taxes, is 
historically limited. and therefore, actual 
reductions in revenues resulting from the pi'oposed 
ordinances could vary from the projected amount. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

24 



Memo to Finance and Labor Committee 

May 3, 2000 Finance and Labor Committee Meeting 

As shown in Attachment I, Mr. Jack 
Moerschbaecher, the City's Convention Facilities 
Director, reports that Convention Center customers 
have expressed concern about application of the 
transient merchant tax to merchants who have 
exhibits at trade shows and conventions. According 
to Mr. Moerschbaecher, the San Francisco 
Convention and Visitors Bureau and Moscone 
Center "have received numerous communications 
(from Convention Center customers) protesting the 
potential application of this tax to their shows". 
Mr. Moershcbaecher states that, if 17 Convention 
Center customers who have expressed concern 
about paying the tax were to transfer their 
business to other cities, the City would lose an 
estimated $4,300,000 in Convention Center 
revenues. Additionally, Mr. Moershcbaecher states 
that a survey of 9 cities, including 7 California 
cities (Anaheim, Burbank, Fresno, Los Angeles, 
San Diego, San Jose, and Santa Clara), Portland, 
Oregon, and Las Vegas, Nevada, shows that none 
of the 9 cities impose a transient merchant tax. 
Additionally, Mr. Doug Neilson of the Convention 
and Visitors Bureau reports that the subject 
transient merchant tax has been "sporadically 
enforced, at best, for many years", as shown in 
Attachment II. 

Recommendation: Approval of the proposed ordinances is a policy 

matter for the Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

25 




04/13/00 TUE 14:50 FAI 415 978 5913 MOSCONE EIP PROJN PROJ 

Attachment I 

City and County of San Francisco San Francisco Convention Facilities 

Willie Lewis Brown, Jr. 
Xfayor 

Jack Moenchbaecher 
Director 



October 12, 1999 

The Honorable Susan Leal 
Treasurer / Tax Collector 
City Hall - Room 140 
Dr. Carlton B. Coodlert Place 
San Francisco, CA 9-* 102 

Re: Transient Mercnant Tax 

Dear Susan. 

I would like to provide you with more data to help us assess the likely damage to the City's 
convention business if the transient mercnants tax continues to be applicable to our convention 
facilities. 

As you are aware, this tax currently could be imposed upon exhibitors at conventions / tradeshows if 
they intend to sell product from their booths. In our industry, the exhibit element of a trade show is 
critical to the survival of that show The financial success of a convention / r.-aeeshow is determiree 
not by attendance fees, but by the charges to exhibitors tor exnibit space. Max, m. ring exhibitor 
participation and exhibit space sold is the goal of our customers. Therefore, it should come as no 
surprise that the Convention and Visitors Bureau and the Moscone Center have received numerous 
communications protesting the potential application of this tax to their shews. The letters and calls 
have ranged from expressions of concern to outrage. 

Attached to this letter is a list of those customers who have been vecal to date. They have paid or 
will pay the City $4.3 million m direct revenue along with lens c ; millions of dollars in hotel tax and 
sales tax. Fifteen of these customers are also repeat customers that have placec San Francsco i 
rotation patterns. Risking loss any one of these seventeen groups to San Q'egc, Las Vegas or 
Anaheim over the transient merchants tax manes io sense. The information p-evceo is specifically 
limited to those shows that have formally protested the transient merchant tax. Each day the list 
grows longer. 

While the transient merchant :ax might be seen as an apo-;cr ate levy on a merchant at a cors-me' 
show m some small venue m the City, :he imposition on customers that have said the City millions 
in taxes and revenues and who could choose to go elsewne'e see-rs ~cr_c:ei: 

Please contact me if >ou need runner information. 

Very truly yours. 




chbaeci-er 



99 Grove Street, *204. San Francisco, CA 94102 - Telephone (415} :54-oI"S Fxx .4' 5- 971*5913 

26 



"04-18-30 09:01 



DATE: 
TO" 
FROM: 
RE: 



From-SFCVB CONVENTION DIVISION 



415-227-2S4S 



Attachment II 



MEMORANDUM 

April 17. 20CO 

Severin Campbell, Budget Consultant 
Doug Neilson, San Francisco Convennon & Visitors Bureau 
TRANSIENT MERCHANT TAX 




1&7V 



The city's Transient Merchants Tax cede nas been sporadically enforced, at best, for many years 
When there has been an effort to enforce it. it has been adamantly opposed by convention and 
iradesnow organizers, and viewed by them as being nickel-and-dimed when San Francisco is 
already one of the most expensive cities m wnich to hold an event. It would also be a tremendous 
administrative nightmare for them as well as everyone else involved. 

Most recently, four (4) convention and tradeshow organizers voiced their strong resentment toward 
such a tax if implemented during their event By name they are: MacWond, the National 
Association of Elementary School Principals, the Amencan Speech-Language-Heanng 
Association, and the National School Boards Association. Together, these organizations and their 
attendees have or will spend over S35.GC0.0C0 in the city during their stay and over $350,0.00 in 
Moscone Center in rent and food & beverage alone. 

The four (4) examples given above represent only a small sample of tne 55 to 60 conventions and 
tradeshows that meet in Moscone Center on an average each year. Most of the croucs 
occupying the convention center that have an exhibition component as a part of their event, do 
have exhibitors who sell product during the event However, it is only a very small percentage of 
the total number of exhibiting companies. 

Currently, most of these groups are noi even aware of the merchant tax. if, and when, they are 
made aware of it, we will have a larger problem on our hands and will give a definite edce to all the 
California cities we compete with, which do not impose the tax. 

The amount of money tne city could ever hepe to collect in merchant taxes would be insignificant 
to the tctal revenues generated by conventions and tradeshows. However, ihe revenues lest by 
the cancellation of just one convention due to the enforcement of mis tax code could never be 
redeemed from all the merchant taxes the city could ever hope to collect for many years to come. 

If you have any further questions, please do net hesitate to call me at 227-2514 Thank ycu 

cc: .acx Meetscnoacner, City ana Ccunry of San Francises 
jenn Marks. San Francisco Ccnvenucn 4 Viziers Bureau 



SAN FRANCISCO CONVENTION i VISITORS SUREA'J • 201 Tfltra »tt«1 Sblti =C0 • Sun FranCiSU CA 94103-31 J5 
v, -: i, ^ iico • Fax 41 5 227 2(502 • TTY ;T5 22: 2Sl9 • San Francsca Fatfa* n _s anu Cjnaca i MO 220 574? . n a ;, te „..„„ S f*,siiof if( . 



27 



Attachment III 



Office of the Treasurer 

& Tax Collector 

City and County of San Francisco 

CityHall , Room 140 

SI Dr. Carlton B. Goodlert Place, San Francisco. CA 94102 




SUSAN LEAL. Treasurer 

JAY BANF1ELD. Chief Assistant Treasurer 
Phone: (41 



MEMORANDUM 

To: Sevenn Campbell. Budget Analyst 

From: Francis Nguyen, Head of Property Tax License Division 

Florence Mar, Director, Bureau of Delinquent Revenue 
Date: April 19,2000 
Re: Transient Merchant Fees 



The numbers below reflect total amounts collected under the Transient Merchants 
Ordinance in recent years (based upon the S500.00 registration fee. plus 10% surcharge 
on sales over 55,000). 

Note that in FY98-99, our office began a collaborative effort with San Francisco 
Convention Facilities to proactively inform vendors of their obligation to register with 
our office, and the increase in collections reflects this effort. 

FISCAL YEAR AMOUNT COLLECTED 
FY96-97 S3.736.40 

FY97-98 20.00 

-99 541,234.38 

FY99-00 SI 6.006.75 (as of 03/31 00) 



The new ordinance proposes that the surcharge be eliminated, and that the registration fee 
be set at SI 50.00, the average amount charged to local businesses who register with our 
office. Under the new ordinance, we will collect a SI 50.00 quarterly registration fee from 
transient merchants who exhibit at venues other than Bill Graham and Moscone Center. 
Last year, there were 10 such vendors who registered with our office. 

We are currently working on contacting exhibit halls in an effort to automate this process 
as much as possible, which will reduce our time and expense in enforcing this ordinance. 
Under the existing ordinance, the staff time required includes an Investigator (a total 
3 weeks FTE at a salary range of S2326-34S9), plus License division time to issue the 
paperwork, and Cashier division time to process the payments. 

It is anticipated that we will recognize further cost savings and enhanced collections due 
to the redeployment of investigators, who will be able to concentrate on potentially more 
lucrative investigation activities. However, the net impact of this ordinance revision on 
our total collections is uncertain. 



Memo to Finance and Labor Committee 

May 3, 2000 Finance and Labor Committee Meeting 



Item 12 - File 00-0670 

Department: 

Item: 



Sheriff 

Resolution approving the Controller's certification that 
County Jail Food Service Management operations for the 
City and County of San Francisco can continue to be 
practically performed by a private contractor at a lower 
cost for the year commencing July 1, 2000, than if work 
were performed by City and County employees. 



Services to be 
Performed: 

Description: 



County Jail Food Service Management 

Charter Section 10.104 provides that the City may 
contract with private firms, for services which had been 
performed by City employees if the Controller certifies, 
and the Board of Supervisors concurs, that such services 
can in fact be performed by private firms at a lower cost 
than similar work services performed by City employees. 

The Controller has determined that contracting for Jail 
Food Service Management services for FY 2000-2001 
would result in estimated savings as follows: 



Citv-Operated Service Costs 

Salaries 
Fringe Benefits 
Total 

Contractual Services Cost 

Estimated Savings 



Lowest 

Salary 

Step 


Highest 

Salary 

Step 


$1,031,808 
285.070 

$1,316,878 


SI. 221. 402 

314.604 

$1,536,006 


997.341 


997.341 


S319.537 


$538,665 



Comments: 



1. Jail Food Service Management services consist of the 
administrative oversight and provision of meals at six 
County jails that provide housing to inmates, 

2. Jail Food Service Management services were first 
certified, as required under Proposition J (Charter Section 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

29 



Memo to Finance and Labor Committee 

May 3, 2000 Finance and Labor Committee Meeting 

10.104), in 1980 and have been continuously provided by 
an outside contractor since that time. 

3. The five-year contract with .Aramark Correctional 
Services expired on November 30, 1999. The contract 
included an option to extend for the period of one year. 
According to Ms. Jean Mariam, Budget Manager for the 
Sheriffs Department, the Sheriffs Department instead 
extended the contract with Aramark on a month to month 
basis for two reasons: (a) Concern that Y2K computer 
problems could cause a disruption in supplies if a new 
vendor began contract service, and (b) Aramark was not 
in compliance with the Equal Benefits Ordinance. Ms. 
Manani reports that Aramark is now compliant with the 
Equal Benefits Ordinance as certified by the Human 
Rights Commission. As a result, the contract with 
Aramark has been extended for one-year from May 1. 
2000 through April 30. 2001. 

The Purchasing Department and the Sheriffs 
Department are jointly developing new contract bid 
specifications and are expected to accept competitive bids 
for the food service contract early in the year 2001. 

4. The Contractual Services Cost used for the purpose of 
this analysis is based on Aramark Correctional Services' 
projected FY 2000-2001 costs to provide County Jail Food 
Services Management services. 

5. The Contractual Services Cost of $997,341 for FY" 
2000-2001 i or 5.9 percent more than the FY" 
1999-2000 cost of 5941,614. According to Ms. Jane Mason 
of the Sheriffs Department, the increased cost resulted 
from hiring a general manager who supervises food 
service at the six jail facilities. 

6. The Controller's supplemental questionnaire with the 
Department's responses is shown attached to this report. 

Recommendation: Approve the proposed resolution. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

30 



CHARTER 10.104.15 (PROPOSITION J) QUESTIONNAIRE 

DEPARTMENT: Sheriff 

CONTRACT SERVICES: Aramark Correctional Services - Food Contract 

CONTRACT PERIOD: July 1, 2000 - June 30, 2001 

(1) Who performed the activity/service prior to contracting out? City employees, including 
a Food Service Administrator, Chefs and Cook, provided this service prior to 1980. 

(2) How many City employees were laid off as a result of contracting out? None. 

(3) Explain the disposition of employees if they were not laid off. The Food Service 
Administrator's position was vacant; 5 Chefs and 1 Cook were hired by departments with similar 
classifications. The Mayor's Office deleted the positions from the Fy 1994-95 budget. 

(4) What percentage of City employees' time is spent of services to be contracted 
out? None. 

(5) How long have the services been contracted out? Since 1980. 

Is this likely to be a one-time or an ongoing request for contracting out? 
On-going. 

(6) What was the first fiscal year for a Proposition J certification? FY1 980-81 
Has it been certified for each subsequent year? Yes. 

(7) How will the services meet the goals of your MBE/WBE Action Plan? 

The department has a waiver for this contracted service, which is a highly specialized and 
competitively bid contract. 

(8) Does the proposed contract request that the contractor provide health insurance 
for its employees? No. 

Even if not required, are health benefits provided? Yes. 

(9) Does the proposed contractor provide benefits to employees with spouses? 

Yes. 
If so, are the same benefits provided to employees with domestic partners? 

No. 
If not, how does the proposed contractor comply with the Domestic Partners 
ordinance? Current contract expires 1 1/30/99. Contractor understands that any contract 
modification prior to that time will require compliance with ordinance. Contractor has submitted 
documentation to Human Rights Commission, 

Department Representative: Jean Mariani 

Telephone Number: (415)554-4316 



31 



Memo to Finance and Labor Committee 

May 3, 2000 Finance and Labor Committee Meeting 

Item 13 - File 00-0673 



Department: 
Item: 



Services to be 
Performed: 

Description: 



Sheriff 

Resolution approving the Controller's certification that 
the S.. . Francisco Own Recognizance Project (O.R.) for 
the City and County of San Francisco can continue to be 
practically performed by a private contractor at a Lower 
cost for the year commencing July 1, 2000. than if the 
work were performed by City and County employees. 



Own Recognizance Project 

Charter Section 10.104 provides that the City may 
contracl with private firms for services which had been 
performed by City employees if the Controller certi: 
and the Board <>f Supervisors concurs, that such services 
can in fact be performed by private firms at a lower cost 
than similar work services performed by City employees. 

The Controller has determined that contracting for the 
Own Recognizance Project for FY 2000-2001 would result 
m estimated savings as follows 



Citv-Operated Service Costs 

Sala: 

Fringe Benefits 
tal 

Contractual Services Cost 

Estimated Savings 



Lou 
Salary 
Step 


Highest 

Salary 
Step 


$89-4 
233.737 
SI. 128.244 


"-9,214 

259.573 
SI. 318. 787 


858.052 


858.052 


S270.192 


S460.735 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

32 



Memo to Finance and Labor Committee 

May 3, 2000 Finance and Labor Committee Meeting 



Comments: 



Recommendation: 



1. The Own Recognizance Project interviews persons 
arrested on non-warrant felony charges and certain 
misdemeanors that are not citable by the Sheriffs 
Department, who are booked into custody and are not 
immediately bailed or cited. 

2. The Sheriffs Department reports that the O.R. Project 
was first certified under Proposition J, (Charter Section 
10.104), m FY 1977-78 and has been continuously 
provided by an outside contractor since that time. 

3. The prior one-year contract with the San Francisco 
Institute for Criminal Justice-O.R Project, the non-profit 
organization that provides the O.R. Project, expires on 
June 30, 2000. The Sheriffs Department wishes to enter 
into a new contract for FY 2000-2001. Approval of this 
proposed resolution is required before the expired contract 
with the San Francisco Institute for Criminal Justice-O.R 
Project can be renewed for FY" 2000-2001. 

4. The Contractual Services Cost used for the purpose of 
this analysis is the San Francisco Institute for Criminal 
Justice-O.R. Projects' projected FY 2000-2001 cost for the 
Own Recognizance Project. 

5. The Contractual Services Cost of $858,052 for FY 
2000-2001 is $36,456 or 4.4 percent more than the FY" 
1999-2000 cost of $821,596. According to Ms. Jane Mason 
of the Sheriffs Department, the increased cost resulted 
from higher non-personnel costs, which were somewhat 
offset by lower personnel expense. 

6. The Controller's supplemental questionnaire with the 
Department's responses is attached to this report. 

Approve the proposed resolution. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

33 



CHARTER 10.104.15 (PROPOSITION J) QUESTIONNAIRE 

DEPARTMENT: Sheriff 

CONTRACT SERVICES: San Francisco Institute for Criminal Justice 

Own Recognizance (OR) Project 
CONTRACT PERIOD: July 1. 2000 - June 30. 2001 

(1) Who performed the activity/service prior to contracting out? 
Service was not provided. 

(2) How many City employees were laid off as a result of contracting out? 
None 

(3) Explain the disposition of employees if they were not laid off. Not applicable 

(4) What percentage of City employees' time is spent of services to be 
contracted out? None 

(5) How long have the services been contracted out? Since 1966 

Is this likely to be a one-time or an ongoing request for contracting out? 

On-going 

(6) What was the first fiscal year for a Proposition J certification? fyi 977-78 
Has it been certified for each subsequent year? Yes 

(7) How will the services meet the goals of your MBE/WBE Action Plan? 

Because a non-profit organization provides the services, the MBE/WBE Plan is not 
affected. 

(8) Does the proposed contract request that the contractor provide health 
insurance for its employees? No 

Even if not required, are health benefits provided? Yes 

(9) Does the proposed contractor provide benefits to employees with 
spouses? Yes. 

If so, are the same benefits provided to employees with domestic 
partners? Yes 

If not, how does the proposed contractor comply with the Domestic 
Partners ordinance? Contractor complies with ordinance. 

Department Representative: Jean Mariani 

Telephone Number: (415)554-4316 



Memo to Finance and Labor Committee 

May 3, 2000 Finance and Labor Committee Meeting 

Item 14 - File 00-0674 






Department: 



Item: 



Services to be 
Performed: 



Sheriff 

Resolution approving the Controller's certification that 
the Pre-Trial Diversion Project for the City and County of 
San Francisco can continue to be practically performed by 
a private contractor at a lower cost for the year 
commencing July 1, 2000, than if the work were 
performed by City and County employees. 



Pre-Trial Diversion Project 



Description: 



Charter Section 10.104 provides that the City may 
contract with private firms for services which had been 
performed by City employees if the Controller certifies, 
and the Board of Supervisors concurs, that such services 
can in fact be performed by private firms at a lower cost 
than similar work services performed by City employees. 



The Controller has determined that contracting for the 
Pre-Trial Diversion Project for FY 2000-2001 would result 
in estimated savings as follows: 



Citv- Operated Service Costs 

Salaries 
Fringe Benefits 
Total 

Contractual Services Cost 

Estimated Savings 



Lowest 


Highest 


Salarv 


Salary 


Step 


Step 


$605,595 


$717,002 


159.714 


177.228 


$765,309 


$894,230 


606,000 


606.000 


SI 59. 309 


$288,230 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

35 



Memo to Finance and Labor Committee 

May 3, 2000 Finance and Labor Committee Meeting 

Comments: 1. The Pre-Trial Diversion Project diverts selected 

misdemeanor offenders from the criminal justice system 
and places such offenders in the Pre-Trial Diversion 
Project to receive vocational training, job placement and 
counseling. 

2. The Sheriffs Department reports that this service was 
first certified as required under Proposition J, (Charter 
Section 10.104) in FY 1977-78 and has been continuously 
provided by an outside contractor since that time. 

3. The prior one-year contract with the San Francisco 
Diversion Project, the non-profit organization which 
provides the Pre-Trial Diversion Project, expires on June 
30, 2000. The Sheriffs Department wishes to enter into a 
new contract for FY 2000-2001. Approval of the proposed 
resolution is required before the expired contract with the 
San Francisco Diversion Project can be renewed for FY 
2000-2001. 

1 The Contractual Services Cost used for the purpose of 
this analysis is the San Francisco Pre-Trial Diversion 
Project's projected FY 2000-2001 cost for the Pre-Trial 
Diversion Project. 

5. The estimated FY 2000-2001 Contractual Services 
Cost of $606,000 ; 8 or 18.3 percent more than the 
FY 1999-2000 cot of $512,142. According to Ms. Jane 
Mason of the Sheriffs Department, the increased cost 
resulted from hiring an additional 0.7 FTE case worker 
supervisor and hiring an additional 1.2 FTE court 
alternative specialists needed for increased inmate 
counseling based on recent increases in jail population. 

6. The Controller's supplemental questionnaire with the 
Department's responses is attached to this report. 



Recommendation: 



Approve the proposed resolution. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

36 



CHARTER 10.104.15 (PROPOSITION J) QUESTIONNAIRE 

DEPARTMENT: Sheriff 

CONTRACT SERVICES: San Francisco Pretrial Diversion Project 

CONTRACT PERIOD: July 1 , 2000- June 30, 2001 

(1) Who performed the activity /service prior to contracting out? 

Service was initially funded through Federal grant monies and service workers performed 
the duties. 

(2) How many City employees were laid off as a result of contracting out? 
None. 

(3) Explain the disposition of employees if they were not laid off. Not applicable. 

(4) What percentage of City employees' time is spent of services to be 
contracted out? None. 

(5) How long have the services been contracted out? Since 1977. 

Is this likely to be a one-time or an ongoing request for contracting out? 

On-going. 

(6) What was the first fiscal year for a Proposition J certification? fyi 977-78 
Has it been certified for each subsequent year? Yes. 

(7) How will the services meet the goals of your MBE/WBE Action Plan? 

Because a non-profit organization provides the services, the MBE/WBE Plan is not 
affected. 

(8) Does the proposed contract request that the contractor provide health 
insurance for its employees? No. 

Even if not required, are health benefits provided? Yes. 

(9) Does the proposed contractor provide benefits to employees with 
spouses? Yes. 

If so, are the same benefits provided to employees with domestic 
partners? Yes. 

If not, how does the proposed contractor comply with the Domestic 
Partners ordinance? Contractor complies with ordinance. 

Department Representative: Jean Mariani 

Telephone Number: (415)554-4316 



37 



Memo to Finance and Labor Committee 

May 3, 2000 Finance and Labor Committee Meeting 

Item 15 - File 99-0252 

Item: Ordinance amending the Administrative Code to require that 

a minimum level of compensation (a "living wage"), 
compensated time off. and health benefits be provided to 
certain employees of contractors providing services to the 
City and County and of parties who enter into contracts for 
the exclusive use of property owned by the City and County: 
and providing that the number of hours of services required 
of General Assistance recipients who are performing services 
in order to maintain eligibility shall be calculated using the 
living wage. 

Description: The proposed ordinance would amend the Administrative 

Code to require that private contractors which have service 
contracts with thf City and private firms which have 
property leases for the use of property owned by the City 
provide certain employees with the following 

• A living wage of $11 per hour which shall be adjusted 
annually by the percentage increase in the Consumer 
Pncr [ndex. 

• Either (a) a paid membership in a group health 
insurance plan: or (b) cash in an amornt that is no less 
than the individual rate for the base group rate of the 
Health Maintenance Organization (HMO) with the 
most members in California, which is currently Kaiser 
Permanente. Under the proposed ordinance. City 
service contractors and leaseholders would only be 
required to provide such health insurance benefits to 
employees earning less than the prevailing living wage 
rate (initially S 1 1 per hour). No health insurance 
benefits would have to be provided by the employer. 

• Compensated time off equal to 0.231 days per work 
week (12 days annually) for sick leave, vacation or 
personal necessity: or provide a cash equivalent. 

• Uncompensated time off equal to 0.192 days per v. 
week (10 days annually) for sick leave. 



Board of Supervisors 

Budget Analyst 

38 



Memo to Finance and Labor Committee 

May 3, 2000 Finance and Labor Committee Meeting 

The two types of agreements subject to the ordinance are: (a) 
services contracts, including service contracts supported by 
grant funds, and (b) property contracts for use of property 
owned by the City, or for which the City has exclusive use, 
for a term exceeding 29 days. The proposed ordinance covers 
only • an organization's employees who work on service 
contracts with the City and does not apply to other 
employees of the organization. It covers home health care 
workers employed through the In-Home Supportive Services 
(IHSS) program and employees of companies that lease 
property from the City. The ordinance would be phased in as 
service or lease contracts are renewed. The ordinance would 
exempt City contracts with vendors for the purchase of goods, 
service contractors with five employees or less, and 
contractors with less than $25,000 in annual business with 
the City. A number of additional exclusions are listed on 
pages 8-11 of the proposed ordinance. 

Comment: The Budget Analyst has been informed that the proposed 

ordinance has been scheduled on the May 3, 2000 Finance 
and Labor Committee agenda for purposes of accepting 
testimony and that the proposed ordinance will be continued 
to the Finance and Labor Committee meeting of May 17, 
2000. 

The Budget Analyst will submit a final report on the 
proposed ordinance for the May 17, 2000 Finance and Labor 
Committee meeting. 



Board of Supervisors 

Budget Analyst 
39 



Memo to the Finance and Labor Committee 

May 3, 2000 Finance and Labor Committee Meeting 



Item 16 - File 00-0476 

Department: 

Item: 



Description: 



Comments: 



Human Rights Commission (HRC) 

Ordinance amending provisions of Chapters 12A, 12B, 
and 12C of the San Francisco Administrative Code and 
Article 33 of the San Francisco Police Code to prohibit 
discrimination based on weight or height 

Existing provision- of (a) Chapters L2A, 12B, and 12C of 
the San Francisco Administrative Code, and (b) Article 33 
of the San Francisco Police Code prohibit discrimination 
based on race, religion, color, ancestry, age, sex, sexual 
orientation, gender identity, disability, or place of birth. 
The proposed ordinance would amend these ordinances to 
add weight and height as classes protected agam.-t 
discrimination. 

1. Mr. Larry Bnnkm of the HRC advises that the fiscal 
impact of the proposed ordinance is estimated to be slight. 
This assessment is based on the HRC's experience over 
the last five years of adding gender identity to the City's 
non-discrimination provisions. According to Mr. Brinkin. 
the HRC receives many more complaints about 
discrimination based on gender identity than it does 
about discrimination based on weight and height. Mr. 
Brinkin adds that there has been no significant fiscal 
impact for the City as a result of adding gender identity to 
the City's non-discrimination provision- City 

departments have received e,mder identity discrimination 
training from community groups free-of-charge, as would 
be the case with weight and height discrimination 
training, according to Mr. Brinkin. 

2. As there have been few weight and height 
discrimination claims historically, Mr. Brinkin states that 
the HRC has not requested any additional staff in its FY 
2000-2001 budget proposals to address weight and heicht 
discrimination claims should this proposed ordinance be 
approved. 

3. According to Mr. Brinkin. without amendments to the 
Civil Service Code (which would require voter approval of 



40 



Memo to the Finance and Labor Committee 

May 3, 2000 Finance and Labor Committee Meeting 

a Charter amendment), the subject ordinance would not 
affect City departments as employers. Furthermore, HRC 
consultation with advocates about the subject ordinance 
has focused on private sector employers and public 
accommodations issues. Consultation with advocates did 
not suggest that there were discrimination issues with 
regard to the client services provided by City 
departments. 

4. Mr. Brinkin states that under the proposed ordinance 
City department employees would not be able to file 
weight and height discrimination claims against the City 
as their employer. However, members of the public 
receiving City services would be able to file weight and 
height discrimination complaints against the City. Such 
complaints from clients could be dealt with, in the first 
instance, by City departments' internal complaints 
procedures. If those internal departmental procedures 
failed to achieve resolution, then the HRC would be 
responsible for resolving discrimination claims, according 
to Mr. Brinkin. According to Ms. Susan Frankel of the 
City xA.ttorney's Office, although it is not specifically 
addressed in the proposed ordinance, any person who felt 
their claim was not properly resolved by the HRC would 
have the option to file a discrimination suit against the 
City. 

5. Mr. Brinkin states that City contractors would be 
required to sign a declaration that they would not 
discriminate based on weight and height if the proposed 
ordinance is approved. 

Recommendation: Approval of the proposed ordinance is a policy matter for 

the Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 3, 2000 Finance and Labor Committee Meeting 



Item 17 - File 00-0669 

Department: 

Item: 



Description: 



Comments: 



Taxi Commission 

Ordinance amending Article XIII of Chapter 10 of Part I of 
the- San Francisco Municipal Code (Administrative Code) by 
adding Section 10.117-28, to create a Taxi Industry 
Account. 

As requested by the Taxi Commission, the proposed 
ordinance would add a new Section 10.117-28 to Article 
XIII, Chapter 10 of the Administrative Code. This would 
authorize the Controller to establish a new Special Account 
known as the Taxi Industry Account to receive gifts, 
contributions, grants or other revenues. The proposed 
ordinani he following: 

Taxi Industry Account would be established and 
administered by the Taxi Commission. 

(b) Donations of money and other gifts from private parties 
to the Taxi Commission would be deposited into the Taxi 
Industry Account. 

(c) The Taxi Commission would be authorized to use 
monies in the subject account for programs to promote 
the safety and well-being of taxi drivers and encourage 
modernization of the taxi industry 

(d) Interest accrued on monies in the account would become 
part of the principal funds in the subject account. 

(e) Unexpended account balances at the end of the fiscal 
year shall be carried over into the next fiscal year. 

Approval of the proposed ordinance would authorize the 
establishment of the Taxi Industry Account. 

1. According to Mr. Farrell Suslow of the Taxi Commission, 
the purpose of the proposed Taxi Industry Account is to 
allow the Commission to receive cash gifts and donations 
from private parties. Mr. Suslow states that such gifts and 
donations would be used primarily to fund programs 
promoting taxi driver welfare and taxi industry safety, and 
that the Taxi Commission would determine which 
programs to fund. Mr. Suslow advises that expected 
donations would come predominately from taxi companies 
and advertising brokers that use taxis for "wrap" 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

42 



Memo to Finance and Labor Committee 

May 3, 2000 Finance and Labor Committee Meeting 

advertising. 1 The Attachment, provided by Mr. Suslow, 
contains an explanation of the Taxi Commission's request 
for the proposed ordinance. 

2. In accordance with Administrative Code Section 10.116, 
City Departments may receive cash gifts less than $5,000 
and administer such gifts in accordance with the wishes of 
the donor. Administrative Code Section 10.116 provides 
that such gifts are to be deposited with the Treasurer, in an 
account designated by the Controller. Cash gifts exceeding 
$5,000 require Board of Supervisors approval. 

3. According to Mr. Thomas Owen of the City Attorney's 
Office, under the proposed ordinance, separate Board of 
Supervisors approval would not be required for (a) 
acceptance of gifts and donations exceeding $5,000 or (b) 
appropriation for expenditure of funds from the Taxi 
Industry Account. 

Recommendation: Approval of the proposed ordinance is a policy matter for 
the Board of Supervisors. 



1 Wrap" advertising is shrink wrap advertising that encompasses the vehicles. Mr. Suslow states 
that the Taxi Commission is in the process of developing a policy for San Francisco taxis regarding 
"wrap" advertising. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

43 



04/27/00 08:59 



CITY AND COUNTY OK 
SAN KRANCISCO 




NO. 428 P002/0£ 

Attachment 



TAX1CAB COMMISSION 
MAYOR WILLIE L. UROWN JR. 



MARIANN COSTELI.O, PRESIDENT 

RACHIAI.LF. FRANKLIN, VICE PRESIDENT 

VFNCF.NT AOJAYANI. COMMISSIONER 

JANE BOLIG. COMMISSIONER 

CHRIS DITTENHAFER, COMMISSIONER 

PALI. GILLESPIE, COMMISSIONER 

MARY McGUIRE, COMMISSIONER 



TO: Severyn Campbell 

Budget Analyst's Office 

FROMVTarrell Suslow 

DATE: April 27, 2000 

SUBJ.: File 00-0669 

The Tnxicab Commission has asked the Board of Supervisors to odd an ordinance creating a 
"Taxi Industry Fund" in order to accept und disperse donations and other revenues received to 
promote the safety and well-being of taxi drivers and to encourage the modemi/ation of die taxi 
industry. It is anticipated that the frequency of such revenues, expected to be at least several 
occurrences per month, being received and dispersed would make transmitting each request 
through the Board of Supervisors logistically impractical 

If you have any further questions, please call me at 553-1537. 



44 



Memo to the Finance and Labor Committee 

May 3, 2000 Finance and Labor Committee Meeting 



Item 18 - File 00-0566 
Department: 

Item: 

Location: 
Purpose of Lease: 

Lessors: 

Lessee: 

No. of Sq. Ft. and 
Cost Per Month: 

Annual Cost: 

Cost Increase Over 
Current Location: 



Department of Public Health (DPH) 
Department of Real Estate (DRE) 

Resolution authorizing a new lease of real property at 4527 
Mission Street for the Department of Public Health. 

4527 Mission Street 

To provide a wheelchair accessible space for DPH's Southeast 
Child Family Therapy Center. 

The Mitzman Family Trust and John L. Gordon 

The City and County of San Francisco, acting bv and through 
the DPH. 

2,031 square feet at a monthly rental rate of $3,047 
(approximately $1.50 per square foot). 

$36,564 
$18,564 per year 



Utilities and 
Janitorial Service: 

Term of Lease: 

Right of Renewal: 

Source of Funds: 



Lessee is responsible. 

May 1, 2000 to April 30, 2005 (five years) 

One option of five years to extend the term of the lease at the 
prevailing market rate 1 . 

68 percent State and Federal. 32 percent County to be included 
in the DPH annual budget. 



1 The method by which the prevailing rate will be determined is described in detail in a standard 
DRE provision in the lease agreement. According to Ms. Claudine Yenegas of DPH, the provision 
states: 1) that the lessor shall make an offer, 2) if DPH does not agree with the offer, they shall 
submit a counter offer, 3) if neither offer is acceptable to both parties, each shall have the pro-, 
appraised; if the appraisals are within ten percent of one another, the average of the two shall be the 
prevailing rate. 4) if the two appraisals arc not within ten percent of one another, the two appraisers 
shall hire a third appraiser, and the estimate of the third appraiser shall be averaged with the 
nearest of the first two appraisals; the resulting rent shall be the prevailing rate. 

BOARD OF SUPERVISORS 

BUDGET ANALYST 

45 



Memo to the Finance and Labor Committee 

May 3, 2000 Finance and Labor Committee Meeting 

Description: The proposed resolution would authorize a new five-year lease oi 

2,031 square feet of space at 4527 Mission Street. This space 
would accommodate 11 of the 26 employees working at the 
DPH's Southeast Child Family Therapy Center based at 10 29 1 * 
Street and at 300 Bennington Street. 



Comments: 1. According to Ms. Judith Schutzman of DPH, the 26 

'•mployees thai staff DPH's Southeast Child Family Therapj 
Center are primarily located in two spaces: (1) 18 staff member? 
occupy 2,400 square feet of office space at 10 29 th Street, on 
month-to-month lease ($1,500 per month or $18,000 annually) 
and (2) '1 Staff members occupy a 1,189 square foot seminal 
room at 300 Bennington Street, on a month-to-month lease 
per month or $7,800 annually). Total rent for the twe 
local inns is, therefore, $25,800 annually. The other sia 
employees are "outstationed at various locations due to the lack 
of office space al the Center's two current locations at 10 29^ 
Street and 300 Bennington Street. Therefore, the total number 
of employees is 26. 

rding to M>. Schutzman, the Center is relocating from the 
street location because: 1) it does not meet ADA 
requirements, 2) it is compact, and as such offers limited space' 
for confidential consultation with the Center's clients, and 
is in need of renovation which the landlord is unwilling to make. 

2. The combined annual rent for the two properties currently 
occupied by the Center, and which accommodates 20 staff 
person- J00 per year. In total, 20 employees occupy 

3,589 square feet (approximately 122 square feet per employee 
excluding approximately 1,150 square foot space for client 
visits). The proposed lease would accommodate 11 staff persons 
in 2.031 square feet (165 square feet per employee excluding 216 
square feet of space that would be used for client visits) and 
would cost $36,564 per year. The remaining 15 staff persons 
would remain in the current location at 29 th Street until 3 
second space can be located. According to Ms. Schutzman. the 
Center is currently negotiating with a property owner in the 
Bayvie w- Visit acion Valley vicinity, and expects to conclude 
negotiations for a new lease agreement in about one month'.- 
time. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

46 



Memo to the Finance and Labor Committee 

May 3, 2000 Finance and Labor Committee Meeting 



According to Ms. Schutzman, DPH had originally planned to 
relocate the Southeast Child Family Therapy Center into a 
single office space in the Mission Street area. However, DPH 
was not able to locate an area of sufficient size to accommodate 
the Center. Additionally, the Center's clientele has grown such 
that it now mostly resides in two areas of the City: the Mission 
area and the Bayview-Visitacion Valley area. Accordingly, DPH 
decided that two smaller locations would address both the 
difficulty of finding a single location large enough for the entire 
Center, and the location of the Center's clientele. 

3. Under the proposed lease, 11 employees of DPH's Southeast 
Child Family Therapy Center would be located in the subject 
proposed 2,031 square feet of space at 4527 Mission Street. The 
remaining 15 employees will continue to work out of the current 
29 th Street location until a new Bayview-Visitacion property is 
leased. The proposed lease would temporarily bring the total 
number of properties occupied by the Center to three (10 29 th 
Street, 300 Bennington Street, and 4527 Mission Street) until a 
second new location is leased by DPH which will both 
accommodate the remaining 15 employees not moving to the 
new location at 4527 Mission Street, and provide a large 
meeting space like the one at 300 Bennington Street. During 
this transitional period, the total monthly rent for all three 
locations will be $5,197, which is $3,047 more than the present 
monthly rent of $2,150. According to Ms. Schutzman, DPH 
expects to bring a resolution before the Board of Supervisors 
requesting approval of the new Bayview-Visitacion Valley 
facility in July of this year. After the new Bayview-Visitacion 
Valley facility has been rented, DPH will end leases with both 
the 10 29 th Street and 300 Bennington Street facilities. 

4. The proposed monthly x'ent of $3,047 at 4527 Mission Street 
for the initial term will be subject to a four percent adjustment 
at the beginning of the third year of the initial five-year term 
increasing the rent to $3,169 per month, or $38,028 annually. If 
the lease is extended for a second five-year term, it will be 
subject to a four percent increase at the beginning of the third 
year of the five-year extension. 

5. According to Ms. Claudine Venegas of DRE, the proposed 
lease rate is somewhat lower than fair market rent. 



Recommendation: Approve the proposed resolution. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

47 



Memo to Finance and Labor Committee 

May 3, 2000 Finance and Labor Committee Meeting 

Item 19 - File 00-0723 



Department: 
Item: 



Description: 



Board of Supervisors 

Motion recommending submittal of the draft Fiscal 
Year 2000-01 budget for District Offices to the 
Finance and Labor Committee for its review and 
recommendations to the Board. 

The proposed motion would recommend that the 
Finance and Labor Committee review and submit 
to the Board uf Supervisors the proposed amoi. 
$784,655, as part of the FY 2000-01 budget to 
create 11 District Offices for each member of the 
Board of Supervisors. In November of 1996, the 
voters of San Francisco approved Proposition G, 
which requires that all 1 1 members of the Board of 
Supervisors be elected by District, beginning with 
the .'lection in November of 2000. with the Distrid 
Supervisors to take office in January of 2001. The 
proposed budget of $784.fif>.">. which is included as 
an Attachment, provided by Ms. Gloria Young, 
Clerk of the Board of Supervisors would provide 
funding for such offices beginning in January of 
2001. 



Comments: 



1. As shown in the Attachment. $550,000 is 
included for Rents & Leases. Ms Young advises 
that this estimate is based on an assumption of 
approximately $50,000 per District Office for rent 
and furnishings for each of the 11 District Offices 
for the approximately six month period from mid- 
January through June 30, 2001. Because the 
~>0,000 amount is an estimate, subject to future 
lease negotiations by the Department of Real 
Estate, a specific breakdown of how much would be 
spent for furnishings versus rent in each District 
Office is not available at this time. 

Ms. Young advises that each District Office would 
likely comprise at least two offices, with space for 
the Supervisor and one staff person, as well as 
members of the public, including computer, 
telephones, filing and storage area. In addition. Ms. 
Young reports that she has met with 

BOARD OF SUPERVISORS 

BUDGET ANALYST 

48 



Memo to Finance and Labor Committee 

May 3, 2000 Finance and Labor Committee Meeting 



representatives from the Real Estate Department, 
the Public Library and the Public Health 
Department to discuss the possibility of co-locating 
District Offices in existing City-owned or leased 
sites, so that additional funds might not be needed 
, to lease office space. However, Ms. Young notes 
that an existing City-owned or leased site was not 
found in District 8. Also, many of the other districts 
only have Police Stations available, which Ms. 
Young notes may not be the most suitable location 
for members of the Board of Supervisors to meet 
with the public. Therefore, Ms. Young advises that 
she has included the proposed budget request of 
$50,000 per District Office to cover the likelihood of 
leasing additional private space for Supervisors' 
District Offices. 

2. Mr. Tony Delucchi of the Real Estate 
Department advises that commercial rents are 
currently averaging between $3.50 to $4.50 per 
square foot per month. Mr. Delucchi advises that at 
the upper end, these estimated rents would include 
utility and maintenance expenses. Assuming that 
each of the proposed District Offices would 
comprise an average of approximately 1,000 square 
feet of space for a two-suite office, Mr. Delucchi 
reports that each District Office would cost between 
$3,500 to $4,500 per month ($42,000 to $54,000 
annually). For the 11 District Offices, the total 
annual estimated rental costs would be 
approximately $462,000 to $594,000. However, Mr. 
Delucchi cautions that the commercial rental 
market in San Francisco has been increasing 
dramatically during the past few years, and until 
actual rental agreements are negotiated for each 
District Office, the actual cost of each District 
Office cannot be known. For example, Mr. Delucchi 
advises that prime downtown commercial view 
space is currently renting for $6.50 to $8.50 per 
square foot per month, or approximately $6,500 to 
$8,500 per month for a 1,000 square foot 
commercial lease. 

In addition, Mr. Delucchi notes that paint anil 
carpeting of each District Office generally costs 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

49 



Memo to Finance and Labor Committee 

May 3, 2000 Finance and Labor Committee Meeting 

approximately $10 per square foot, or an additional 
$10,000 per 1,000 square foot office, totaling 
additional one-time expenses of $110,000 for the 11 
District Offices. If further tenant improvements are 
required, Mr. Delucchi advises that reasonable 
. improvements generally average one-time costs of 
$35 to $40 per square foot. 

Mr. Delucchi reports that new furnishings for each 
District Office, including one electrified and 
ergonomic workstation and one Executive desk, 
chair, file cabinet, and companion chairs would cost 
approximately $10,000. If additional conference 
tables and chairs are required. Mr. Delucchi 
advises that such furnishings could add up to an 
additional $5,000 per District Office. Assuming 
$10,000 of furnishings for each of the 11 Distrid 
Offices results in approximately $110,000 ($10,000 
per office x 11 District Offices) in one-time 
furniture costs. 

Based on the above, for six months in FY 2000-01, 
an estimate of $231,000 to $297,000 would be 
needed for lease expenses. Additional one-time 
costs of $110,000 for paint and carpeting and 
another one-time cost of $110,000 for furniture may 
also be needed in the FY 2000-01 budget. Together, 
these costs result in a total of $451,000 to $517,000. 
Given that these estimates do not include any costs 
for additional tenant improvements beyond 
painting and carpeting, the budgeted amount in the 
Attachment of $550,000 for FY" 2000-01 for lease 
expenses, furnishings and tenant improvements, 
would allow a total of $33,000 to $99,000 for such 
tenant improvements. 

3. In addition, the proposed budget reflects the 
costs of purchasing one new Pentium computer, a 
Network printer and related software licensing for 
each District Office at an estimated cost of $3,065 
for a total cost of S33.715 for the 11 District Offices. 
Other one-time costs associated with establishing 
the new District Offices are identified on the 
attached budget and include costs for 
Telecommunications and Information Services 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

50 



Memo to Finance and Labor Committee 

May 3, 2000 Finance and Labor Committee Meeting 

(TIS) and Pacific Bell (PacBell). Based on costs 
reflected in the attached budget, such one-time 
costs are estimated at approximately $366,788. 

4. The Budget Analyst notes that the ongoing costs 

. in the attached budget actually reflect a full year of 
expenses, rather than only six months of costs for 
FY 2000-01, and therefore the Budget Analyst 
recommends that such ongoing costs be reduced by 
50 percent, as shown in the revised amounts 
reflected in the Attachment. Based on these 
reductions, the FY 2000-01 revised budget reflects 
a total one-time and ongoing cost of $724,222, or 
$60,433 less than the $784,655 original budget. 

Separating the one-time expenditures from the 
ongoing expenditures in the proposed six month 
budget for FY 2000-01, the Budget Analyst 
estimates that the ongoing costs of operating 11 
new District Offices would range from 
approximately $582,867 to $714,867 annually, 
depending on actual lease payments. 

5. According to Ms. Young, funding for the proposed 
additional costs of $724,222 in FY* 2000-01 and an 
estimated $582,867 to $714,867 on an ongoing 
basis would need to be provided by the City's 
General Fund. 

6. In addition, Ms. Young advises that there are 
likely to be other costs associated with establishing 
11 District Offices for the Board of Supervisors. For 
example, Ms. Young notes that City Hall currently 
has significant security that might need to be 
provided in other locations. Ms. Young notes that 
other costs, such as (1) transportation or mileage 
reimbursement expenses for the Supervisors' staff. 
MIS support or travel costs for the Clerk's Office 
staff, (2) fax machines at an estimated $12,500 for 
the 11 District Offices, (3) copiers at an estimated 
$66,000 purchase price for the 11 District Offices, 
(4) additional newspaper or magazine 
subscriptions, first aid kits and other supplies 
($2,500 per Supervisor or $27,500 for the 11 
District Offices), (5) additional utility, maintenance 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

51 



Memo to Finance and Labor Committee 

May 3, 2000 Finance and Labor Committee Meeting 

and repair expenses and (6) additional Board of 
Supervisor staff salary and fringe benefit costs may 
also be needed. However, as of the writing of this 
report, Ms. Young could not provide an estimate of 
the total costs associated with these potential 
. District Office expenses. 

Ms. Young also cautions that such expenses do not 
include various other costs that may be associated 
with holding additional off-site Board of 
Supervisors meetings, such as translator costs 
($500-$700 per meeting), costs to purchase a mobile 
public address system ($15,000), DTIS' Citywatch 
costs for 22 Board of Supervisors or Committee 
meetings each year ($75,000-$80,000), a van for off- 
site transportation for MIS support ($45,000- 
$50,000) and an unidentified amount for the Clerk 
of the Board staffs overtime expenses. 

7. Currently, each member of the Board of 
Supervisors has two 1835 Legislative Assistant 
positions and one 1364 Special Assistant V 
position. In accordance with the Supplemental 
Appropriation and Salary Ordinances (Kilos 101- 
97-9 and 102-97-3), that created and initially 
funded the 1364 Special Assistant V positions, 
these 11 staffpositions are scheduled to terminate 
on January 8, 2001. Therefore, each member of the 
Board of Supervisors is likely to have fewer staff in 
January of 2001. 

8. On September 7, 1999 the Legislative Analy- 
Office issued a report on the budgets and policies 
associated with district offices in other California 
cities. The Legislative Analyst's Office surveyed the 
following six California jurisdictions that either 
have Board of Supervisors or City Council Districts: 
(1) City of Oakland, (2) Santa Clara County, (3) 
Santa Cruz, (4) Santa Barbara County, (5) Long 
Beach and (6) City of Los Angeles. According to the 
Legislative Analyst's report, most of these other 
California jurisdictions do not have separate 
district or satellite offices. Those California 
jurisdictions that do have separate district offices 
often rely on campaign funds, donated facilities or 

BOARD OF SUPERVISORS 

BUDGET ANALYST 

52 






Memo to Finance and Labor Committee 

May 3, 2000 Finance and Labor Committee Meeting 

are part of otber public services provided in tbe 
area. 

9. Based on the assumptions identified above and 
as shown in the Attachment, the sLx-month costs in 
FY 2000-01 to create 11 District Offices could be 
reduced by $60,433 from $784,655 to $724,222. 
However, additional costs as identified above, may 
be necessary to fully fund District Offices in their 
first year of operation. 

Recommendation: Approval of the proposed motion is a policy matter 

for the Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



V. 

/ 



BUDGET PROPOSALS FOR DISTRICT OFFICES 
BOARD OF SUPERVISORS 

SUB SUB-OBJECT TITLE 

OBJECT 



03000 



04999 



081C5 



081ET 



Rents & Leases-Blcigs & Stnjctures 

Other Matenals & Supplies 
Local hardware and software: 
One Pentium computer w/ networx 
card, including monitor 



2000-01 
PH 8 BASE 
AMOUNT 

550.000 

33.715 



One Network Pnnter 


800 


Software License Microsoft Office 


525 


Software License: cc:Mail 


40 


Estimate Total 


3.065 


For 1 1 District Offices 


33.7-5 


IS-TIS-ISD Services 




ONE-TIME COST 




District Office Router & DSU 


42.405 


City Hall Router/DSU 




Installation & Setup for District Office 


13.200 


Installation & Setup for City Hall 


1.200 


City Hall Inhouse Winng 


520 


ONGOING COSTS: 




District Office Router/DSU Maintenance 


3.993 


City Hall Router/DSU 


502 


Ongoing Support District Offices 




Plus City Hall 




Pass thru cost - Telephone 


59.000 


TOTAL 




GF-TiS-Teleohone 




ONE-TIME COST 




Fac Bell: FT-1 Frame Relay Circuit 




Installation at District Offices 




Pac Bell: FT-1 Frame Relay Circuit 




Installation at City Hall 




ONGOING COSTS. 




-acSeil Circuit Tc Cistnc: Offices 


-: ; 


PacSell Circuit To City Hail 




TOTAL 


-: - 



Attachment 



FY 2000-01 
PEVTSED 

AMrjurrr 



1.700 



$550,000 
33,715 



137.760 



101,117 



64,473 






1,997* 

251* 
4,896* 

29,500* 



15,600 



21,450* 
2,340* 



39,390 



TOTAL 3UOGET REQUEST FY 2000-01 



S724, 222 



Amounts reduced to reflect six months instead of_12 months. 



54 



Memo to Finance and Labor Committee 

May 3, 2000 Finance and Labor Committee Meeting 

Item 20 - File 00-0691 



Department: 



Department of 
Services (DTIS) 



Telecommunications and Information 



Item: 



Amount: 
Source of Funds: 
Description: 



Hearing to consider release of reserved funds in the amount 
of $1,342,659 for the development of the JUSTIS System 
intended to replace the aging cable system in the San 
Francisco City and County Departments which handle 
criminal justice matters (Police Department, Sheriffs 
Department, District Attorney's Office, Public Defender's 
Office, Adult Probation, and Superior Court). 

$1,342,659 

FY 1999-2000 DTIS budget 

During the FY 1999-2000 budget review, the Board of 
Supervisors appropriated and reserved $1,577,963 for the 
development of the JUSTIS System for the City's criminal 
justice Departments, which is designed to replace the 
existing computer system known as CABLE. At that time, 
the projected FY 1999-2000 cost for the JUSTIS System 
project was $1,790,463, of which an undetermined amount 
would be paid from City General Fund funds and an 
undetermined amount would be paid from State Trial Court 
funds. Pending determination of the amount to be paid by 
General Fund monies and the amount to be paid by State 
Trial Court funds for development of the JUSTIS System, 
the Board of Supervisors appropriated and reserved 
$1,577,963 of the estimated $1,790,463 JUSTIS System FY 
1999-2000 project costs. 

DTIS is now requesting release of $1,342,659, or $215,304 
less than the reserved amount of $1,577,963. According to 
Ms. Kathryn Hile of DTIS, the requested $1,342,659 in 
reserved funds equals 75 percent of the estimated JUSTIS 
System FY 1999-2000 project costs. Ms. Hile states that 
the remaining $447,616 ($1,790,463 less $1,342,659), or 25 
percent, would be paid by State Trial Court funds. 

Approval of the requested release of reserved funds would 
authorize DTIS to expend $1,342,659 on development of the 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 3, 2000 Finance and Labor Committee Meeting 



Budget: 



JUSTIS System, and retain $215,304 of the original 
appropriation of $1,577,963 on reserve. 

The for the proposed expenditure of $1,790,463 in FY 1999- 
2000 for the JUSTIS System is as follows: 



DTIS Staff 
Contractual Services 
Data Storage Software 



$431,398 

1,274,315 

84,750 



Total 



SI. 790,463 



Comments: 



1 Ms Hile advises that DTIS has expended $1,288,778 as 
of March 31, 2000, on DTIS stafl 2) and contractual 

services ($1,195,706) for development of the JUSTIS 
System project. The Attachment, provided by Ms. Hile, is 
an explanation of DTIS expenditures, totaling > 1.288,778, 
and why Buch expenditures were made prior to release of 
the reserved funds by the Board of Supervise 

2. According to Ms. Hile, DTIS has requested $7,200,000 in 
the FY 2000-2001 budget for additional expenditures 
related to the JUSTIS System project. Ms. Hile states that 
DTIS is requesting that any FY 1999-2000 funds not 
expended as of June 30, 2000 (including $215,304 on 
reserve and any remaining unexpended funds from the 
requested $1 be carried over into FY 2000-2001. 

3. Ms. Hi) hat contractual services in FY 1999-2000 
have been provided by consultants from TechProse. Inc. 
Ms. Hile states that DTIS issued a Request for 
Qualifications to Information Technology consultants 
registered with the Purchaser's Office and the Human 
Rights Commission and selected TechProse, Inc. based 
upon their qualifications. As noted above, DTIS has 
expended SI. 195.706 as of March 31, 2000, on contractual 
services provided by TechProse. Ms. Hile reports that the 
hourly rate for such services ranges from $125 to $150 per 
hour, but as of the writing of this report, DTIS was not able 
to provide the hours of contractual services accrued as of 
March 31, 2000. 






4. Ms. Hile states that development and implementation of 
the JUSTIS System is expected to take approximately 3 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 3, 2000 Finance and Labor Committee Meeting 

years at an estimated total cost of $14,000,000. According 
to Ms. Hile, the percentage of costs paid by the City 
General Fund and by State Trial Court funds would be 
determined annually, depending on the type of work to be 
performed, on the application of the work to the Trial 
Courts, and on legal restrictions regarding expenditure of 
State Trial Court funds. 

4. According to Mr. Ron Hass of DTIS, the JUSTIS System 
is replacing the existing computer system which has 
become obsolete. Mr. Hass states that for the past 25 
years, the City's Departments with criminal justice 
responsibilities (Adult Probation, District Attorney's Office, 
Public Defender's Office, Superior Court, Police 
Department, and the Sheriffs Department) have had an 
integrated computer system, allowing the Departments to 
access information regarding bookings, arraignment 
hearings, assignment of attorneys, and other matters. Mr. 
Hass states that the existing system does not have the 
capacity for (a) Departments to develop computerized case 
management systems, or (b) to communicate with the new 
Departmental systems, such as the new Police 911 system, 
which manages Police Department records. According to 
Mr. Hass, the new JUSTIS System would consist of (a) a 
central core data warehouse for Department and 911 
information, from which the Departments could access and 
retrieve information, and (b) a computerized case 
management system within each Department. 

5. Mr. Hass states that DTIS has issued Requests for 
Proposals (RFP) to acquire case management systems for 
Adult Probation, Sheriffs Department, District Attorney's 
Office, Public Defender's Office, and Superior Court. 
According to Mr. Hass. no contractors have been selected 
yet. The estimated cost for acquisition of the case 
management systems is approximately $2,500,000, which 
has been included in the FY 2000-2001 DTIS budget as part 
of the total FY 2000-2001 DTIS request of $7,200,000 for 
the JUSTIS System. 

Recommendation: Approval of the requested release of reserved funds is a 
policy matter for the Board of Supervisors because funds 
have been expended prior to obtaining Board of Supervisors 
authorization. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



City and County of San Francisco 



Liza Lowery 
Executive Director 

Telephone: (415) 554-0801 



Attachment 

Department of Telecommunications 
and Information Services 

Kathryn Hile 
Deputy Director 
Administration and Finance 
Telephone: (415)554-5715 



TO: Sevenn Campbell 

Budget Analyst 

FROM: Kathryn Hile\^ 
Deputy Director 
Administration and Finance 

SUBJ: Request for Release of Reserve 

DATE: April 27, 2000 

When the Board of Supervisors and the Mayor's Office placed the JL'STIS funds on reserve, the 
reason was to resolve a question of how much of the total budget off .vould be paid 

from the General Fund and how much would be paid by the Trial Courts. There was ever any 
expressed question on the part of the Board members or the Mayor's Office of the merit of the 
project. Given the intent of the request for reserve, we did not understand that we should not 
have incurred the expenses prior to the release of reserve. 

The Department of Telecommunications and Information Services billing system is set up on a 
reimbursement basis. We operate by performing the work first and then billing back the charges 
later. Since we did not believe that anyone intended for the project to be delayed, only that a 
fundamental question of funding be resolved we continued to work on the project while the 
negotiations concerning the funding continued. We have not yet been reimbursed for the 
expenses. 

Unfortunately, the resolution to the problem took much longer than we anticipated. We 
apologize for the delay and for prematurely expending the funds. We did not mean any 
disrespect to the Board of Supervisors by this action. 



,.- — ci.„„i c:«u z\r 



Memo to Finance and Labor Committee 

May 3, 2000 Finance and Labor Committee Meeting 




£r-^ Harvey M. Rose 



Supervisor Yee 
Supervisor Bierman 
President Ammiano 
Clerk of the Board 
Controller 
Steve Kawa 



BOARD OF SUPERVISORS 
BUDGET ANALYST 




City and County ofSan Franciscc £" Committe es] 

. __. Government Document Section 

Meeting Minutes Main Library 

Finance and Labor Committee 

Members: Supervisors I. eland Yee, Sue Bierman, Tom A. 

Clerk: Mary Red 



Wednesday, May 10, 2000 



10:00 AM 

Regular Meeting 



City Hall, Room 263 



Members Present: Leland Y. Yee, Sue Bierman, Tom Ammiano. 



DOCUfvi 






Meeting Convened 

The meeting convened at 10:09 a.m. 



MA. 

SANFR 
PUBLIC 



000439 [Requirements Suspended for Certain Transient Merchants - Licensing Requirements] 
Supervisor Leno 

Ordinance amending Article 3 of Part III of the San Francisco Municipal Code, (Business and Tax Regulations 
Code) by adding Section 258 to suspend application of licensing and other requirements for transient 
merchants. 

(Adds Section 258) 

3/13/00, ASSIGNED UNDER 30 DAY RULE to Finance and Labor Committee, expires on 4/12/2000. 

4/26/00, CONTINUED. Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Marti Paschal, Supervisor Leno's Aide; Jack 
Moerschbaecher, Director, S.F. Convention Facilities; Supervisor Ammiano; Susan Leal, Treasurer; Richard Sullivan; Supervisor Yee. 
Continued to May 3, 2000. 

5/3/00, AMENDED, AN AMENDMENT OF THE WHOLE BEARING NEW TITLE. Heard in Committee. Speakers: Ken Bruce, 
Budget Analyst; Supervisor Yee, Susan Leal, Treasurer; Jack Moerschbaecher, Director, S.F. Convention Facilities, Marti Paschal, 
Supervisor Leno's Aide; Tom Owen, Deputy City Attorney; Richard Sullivan. 
5/3/00, CONTINUED AS AMENDED. Continued to May 10, 2000. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst: Supervisor Mark Leno. 
RECOMMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



000680 |Parking Authority Lease Revenue Bonds - North Beach Parking Garage Project| 

Ordinance approving the issuance of Lease Revenue Bonds of the Parking Authority of the City and County of 
San Francisco; approving the execution and delivery of a project lease between the Authority, as lessor and the 
City, as lessee (including certain indemnification provisions therein); approving the form and circulation of an 
official statement relating to said Bonds; authorizing the payment of certain costs of issuance from the 
proceeds of such Bonds; correcting legal title to the property; ratifying previous actions taken in connection 
with the foregoing matters; and authorizing the taking of appropriate actions in connection therewith. (Mayor) 

(Fiscal impact.) 

4/12/00, RECEIVED AND ASSIGNED to Finance and Labor Committee 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst: Ron Szeto, Deputy Director, Department oj 
Parking and Traffic; Supervisor Yee; Bob Davis, Director, Parking Authority. Supervisor Ammiano; Joan 
Wood; Arthur Chang; Cathy Brandhorst; Supervisor Yee: Supervisor Bierman 
RECOMMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



City and County of San Francisco 



Printed at 12:18 P\l on 5 11.00 



Finance and Labor Committee 



Meeting \iinutei 



\la\ III. 2(1(111 



000745 (Appropriating SI. 4 million in 1994 Parking Meter Revenue Bond proceeds to begin construction of the 
North Beach Garage| 
Mayor 

Ordinance appropriating $1,400,000 from interest earnings and projeel balances in the 1994 Parking Meter 
Revenue Bond Fund to fund Phase 1 construction of the North Beach Garage Project, for the Department of 
Parking and Traffic, for fiscal year 1999-2000. 

(Fiscal impact.) 

4 24 IK), RECEIVED AND ASSIGNED to Finance and Labor Committee 

Heard in Committee Speakers Harvey Rose, Budget Analyst, Ron Szeto. Depun Director, Department of 
Parking and Traffic; Supenisor Yee; Boh Davis. Director. Parking Authority Supervisor Ammiano, Joan 
Wood. Arthur Chang. Cathy Brandhorst, Supervisor Yee, Supervisor Bierman 
RECOMMENDED by the following vote: 

Ayes: 3 - Ammiano, Yee, Bierman 



000574 |Fire Code - Increase Fees for Services) 

Ordinance amending Part II, Chapter IV of the San Francisco Municipal Code (Fire Code) by amending 
Section 106 to increase fees for services and by amending Article 90 to require fire pumps to be capable of 
operating on emergency power. (Fire Department) 

(Amends Section 106 and Article 90.) 

4 12/00, RECEIVED AND ASSIGNED to Finance and Labor Committee 

Heard in Committee Speakers: Harvey Ruse. Budget Analyst Supervisor ><i \wi\tant Deputy Chief Garry 
Massetam. Fire Marshall, Captain Tom Harvey, Fire Department. Ken Bruce. Budget Analyst's Office. Cathy 
Brandhorst Continued to Mar 24. 2000 
CONTINUED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



000735 [Employee Health Coverage| 

Ordinance amending Section 16.157, San Francisco Administrative Code, approving Health Service System 
Plans and Rates of Contribution as adopted by the Health Service Board. (Human Resources Department) 

(Amends Section 16.157.) 

4 24 00, RECEIVED AND ASSIGNED to Finance and Labor Committee 

Heard in Committee. Speakers: Haney Rose. Budget Analyst. Bart Duncan. Acting Director. Health Si 
System. 

RECOMMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



City and County of San Francisco 



Printed all 2: 1SPM on VI 1/00 



Finance and Labor Committee 



Meeting Minutes 



May 10, 2000 



000763 [Accept and Expend Federal Grant - Mayor' s Summer Food Service Program] 
Mayor 

Resolution authorizing the Department of Children, Youth and Their Families to accept and expend a grant in 
the amount of $528,000 from the United States Department of Agriculture (USDA) for the Mayor's Summer 
Food Service Program. 

4/24/00, RECEIVED AND ASSIGNED to Finance and Labor Committee 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Camille Broussard, Department of Children, 
Youth and Their Families; Supen'isor Yee; Cathy Brandhorst. 
RECOMMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



000731 [Reserved Funds, Mayor's Office of Community Development] 

Hearing to consider release of reserved funds. Mayor's Office of Community Development (1999 Emergency 
Shelter Grants Program: Resolution No. 109-99), in the amount of $39,934 to be used for the First Response 
Outreach Team to improve access to City services for the homeless. (Mayor) 
4/19/00, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Jon Pon. Mayor's Office of Community 
Development; Joyce Miller, Coalition on Homelessness. 
APPROVED AND FILED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



000276 [Planning Code amendment to rename "Office Affordable Housing Production Program" as the "Jobs- 
Housing Linkage Program" and to apply the program to hotel, entertainment, and retail space 
according to square footage) 
Supervisor Ammiano 

Ordinance amending Article III, Chapter II, Part II of the San Francisco Municipal Code (Planning Code) by 
amending Sections 313, 313.1, 313.2, 313.3, 313.4, 131.5, 313.6, 313.7, 313.8, 313.9, 313.10, 313.11, 313.12, 
313.13, and 313.14, and by adding Section 313.15, to rename the "Office Affordable Housing Production 
Program" as the "Jobs-Housing Linkage Program," to apply the program to all new and expanded hotel space 
of at least 25,000 square feet, to all new and expanded entertainment space of at least 50,000 square feet, and 
all new and expanded retail space of at least 100,000 square feet, and to all new and expanded research, 
development space of at least 50,000 square feet, and by amending Section 314.1 of the childcare ordinance to 
conform to the new definition of "Hotel." 

2/9/00, PREPARED IN COMMITTEE AS AN ORDINANCE. Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Julian 
Low, Supervisor Katz's Aide; Gerald Green, Director of Planning; Supervisor Bierman, Supervisor Ammiano; Ted Lakey, Deputy City 
Attorney; Calvin Welch; Jim Gonzalez, Information Technology Coalition; Marie Jones, S.F. Partnership; Robert McCarthy; Chns 
Moore. To be referred to City Planning for review and comments. 

2/9/00, CONTINUED TO CALL OF THE CHAIR. 2/15/00, Referred to City Planning Commission. 3/22/00, From City Planning, will 
not be able to hear this item until May 15. 

Heard in Committee. Speakers: Supen'isor Ammiano; Calvin Welch, Council of Community Housing; Sue 
Hestor; Chris Daly, Mission Agenda; Beiyl Magilavy; Joyce Miller; Marie Jones, S. F. Partnership: Cathy 
Brandhorst. Referred to City Planning Commission. 
AMENDED, AN AMENDMENT OF THE WHOLE BEARING NEW TITLE. 



City and County of San Francisco 



Printed at 12:18 PM on VI 1/00 



Finance and Labor Committee Meeting Minutes May 10, 2000 

Ordinance amending Article III, Chapter II, Part II of the San Francisco Municipal Code (Planning Code) by 
amending Sections 313, 313.1, 313.2, 313.3, 313.4, 131.5, 313.6, 313.7, 313.8, 313.9, 313.10, 313.1 1. 313.12, 
313.13, and 313.14, and by adding Section 313.15, to rename the "Office Affordable Housing Production 
Program" as the "Jobs-Housing Linkage Program," to apply the program to all new and expanded hotel space 
of at least 25,000 square feet, to all new and expanded entertainment space of at least 50,000 square feet, to all 
new and expanded e-commerce retail space of at least 50,000 square feet, and all new and expanded retail 
space of at least 100,000 square feet, and to all new and expanded research, development and technology 
business service space of at least 25,000 square feet, and by amending Section 314 1 of the childcare 
ordinance to conform to the new definition of "Hotel" and add a definition of research, development and 
technology business service space, and to apply the childcare mitigation requirement to all new and expanded 
research, development and technology business service space of at least 25,000 square feel 

(Amends Sections 313. 313.1, 313.2, 313.3, 313.4, 131.5, 313.6, 313.7, 313 8, 313.9, 313.10, 313.1 1, 313.12, 
313.13, 313.14, and 314.1; and adds 313.15.) 

Continued to call o) the chair 

CONTIM K.I) \S \MKM)H)t.\ [he following vote: 
Ayes: 3 - Yee. Bierman. Ammiano 



000718 |San Francisco General Hospital In-Patient Pharmaiv | 
Supervisor Ammiano 

Hearing to consider progress implementing proposed staffing increases for the capital improvements to the San 
Francisco General Pharmacy approved by the Board of Supervisors during the fiscal year 1999-2000 budget; 
expenditures on registry staff during the current fiscal scar, implementation of the polk) to eliminate co- 
payments for patients under 200",, the level of poverty; current wait times at the pharmacy; proposed plans to 
privatize pharmacy functions and cost"benefits of the proposal; whether the Department of Public Health can 
issue an RFP for pharmacy functions w ithout Board approval and prior to adoption of the fiscal year 1999- 
2001 budget; how many drugs will be available to patients through private pharmacies, if the plan is approved 
by the Mayor and the Board of Supervisors; and other matters related to the current operation of the pharmacy 
and the proposed plan to privatize its functions. 
4/17/00, RECEIVED AND ASSIGNED lo Finance and Labor Committee 

Heard m Committee Speakers Ken Bruce. Budget Analyst's Office. Supervisor Ammiano; Jeff Wong. 
Pharmacist. San Francisco General Hospital (SFGH) and Walgreens; Dr Joe Roll. SFGH; Kay Davis. Social 
Worker. SFGH; Elyse Miller. Case Manager. SFGH; Judith Sansome. Nurse Practitioner. SFGH; Father 
Ignatius. St. Anthony's Church; Richard Marque:. Mission Agenda; Fern Eheling. Nurse. SFGH; Clifford 
Wong; Berta Chacon; Lynn Carman; Kim Gross; Larry Bradshaw, Paramedic. Fire Department; Marie 
Crispi; Walker Dukes; Nora Roman. Nurse. SFGH. Shannon Coughlin. Coalition to Save Public Health. 
Lvdia Santano. S F Organizing Project; Jeff Meredith; Fred Mayer. Pharmacy Planning Sendees. Inc ; Cart 
Pouchmk. Paramedic. Fire Department. Cathy Brandhorst. Dr Mitchell Katz. Director of Health 
CONTINUED TO CALL OF THE CHAIR by the following vote: 
Ayes: 3 - Yee. Bierman, Ammiano 



City and County of San Francisco 4 Printed at 12:18 PM on S/l 1/00 



Finance and Labor Committee 



Meeting Minutes 



May 10, 2000 



000216 [Transportation for Welfare to Work participants] 
Supervisor Bierman 

Hearing to determine what, if any, measures have been adopted by Muni to ensure that those participating in 
the Welfare to Work programs are provided with adequate means of reaching their places of employment, 
especially transportation for nighttime employees, particularly those employed at the San Francisco Airport. 
1/31/00, RECEIVED AND ASSIGNED to Transportation and Land Use Committee. 
3/28/00, TRANSFERRED to Finance and Labor Committee. 
4/5/00, CONTINUED TO CALL OF THE CHAIR. 

Heard in Committee. Speakers: Joyce Miller, Coalition on Homelessness. Continued to July 19, 2000. 
CONTINUED by the following vote: 

Ayes: 2 - Yee, Bierman 

Absent: 1 - Ammiano 



000472 [Chapter 12D Annual Report] 

Hearing to consider the Minority/Women/Local Business Utilization Chapter 12D annual report for March 

2000. (Human Rights Commission) 

3/20/00, RECEIVED AND ASSIGNED to Finance and Labor Committee. With request to report back to Board no later than May 1 5, 

2000. 

Heard in Committee. Speakers: Virginia Harmon, Interim Director, Human Rights Commission: Supervisor 
Yee; Cathy Brandhorst. 
FILED by the following vote: 

Ayes: 2 - Yee, Bierman 

Absent: 1 - Ammiano 



000523 [Chapter 12D Quarterly Report] 

Hearing to consider the Minority /Women/Local Business Utilization Chapter 12D Department Performance 

quarterly report for March 2000. (Human Rights Commission) 

3/20/00, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Virginia Harman, Interim Director, Human Rights Commission; Supervisor 

Yee; Cathy Brandhorst. 

FILED by the following vote: 

Ayes: 2 - Yee, Bierman 

Absent: 1 - Ammiano 



ADJOURNMENT 



The meeting adjourned at 1:00 p.m. 



City and County of San Francisco 



Printed al 12:18 PU on S II DO 



[Budget Analyst Report] 

Susan Horn 

Main Library-Govt. Doc. Section 






CITY AND COUNTY 




OF SAN FRANCISCO 



FjjA 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

1390 Market Street, Suite 1025, San Francisco, CA 94102 (415) 554-7642 
FAX (415) 252-0461 



May 4, 2000 
TO: .Finance and Labor Committee 

FROM: Budget Analyst 

SUBJECT: May 10, 2000 Finance and Labor Committee Meeting 



DOCUMENTS DEP' 
MAY ] 20G0 



SAN FRANCiSCO 
PUBLIC LIBRARY 



Note: This item was continued from the May 3, 2000, Finance and Labor 
Committee meeting. 



Item 1 - File 00-0439 

Department: 

Item: 



Description: 



Treasurer/Tax Collector 

Ordinance amending Article 3 of Part III of the San 
Francisco Municipal Code (Business and Tax Regulations 
Code), by adding Section 258 to suspend application of 
licensing and other requirements for transient mercharts. 

On May 3, 2000, the Finance and Labor Commiitee 
recommended approval of Ordinances amending Part III, 
Article 3, Sections 250, 251, 252, 253, 254, 255, and 257 f 
the Municipal Code (Business and Tax Regulations Code 
which would address City regulations concerning transient 
merchants (Files 00-0432, 00-0433, 00-0434, 00-0435, 00- 
0436, 00-0437, and 00-0438). The subject Ordinance (File 
00-0439) would amend Article 3 of Part III of the San 
Francisco Municipal Code by adding a new Section 258 
which would suspend the application of licensing and other 
requirements for transient merchants. Approval of the 
proposed Ordinances (Files 00-0432 through 00-0438) by 
the Board of Supervisors would amend Sections 250, 251, 
252, 253, 254, 255, and 257, establishing a new definition 



Memo to the Finance and Labor Committee 

May 10, 2000 Finance and Labor Committee Meeting 



for transient merchants and new licensing and other 
requirements for transient merchants. Approval of the 
subject Ordinance (File 00-0439) would add Section 
which provides that all transient merchants are not 
required to (a) apply for a transient merchant license under 
Section 252, (b) obtain a transient merchant license under 
Section 250, and (c) post a $5,000 bond with the Tax 
Collector's Office under Section 255 during the suspension 
period. Under the proposed Ordinance, the suspension 
period would commence on the effective date of the subject 
Ordinance and would end thirty (30) days after a vote by 
the Board of Supervisors for its repeal. 

The new transient merchant definition, licensing and other 
requirements, contained in the amended Sections 250, 251, 
252, 253, 254, 255, and 257, which were recommended for 
approval by the Finance and Labor Committee on May 3, 
2000, areas follow^ 

• The amended Section 251 defines a transient merchant 
as a temporary business, which (a) conducts business in 
San Francisco for less than seven days in any calendar 
year, (b) sells and delivers goods, wares, and 
merchandise, other than food or food products, and (c) 
hires, leases, uses or occupies any building, structure, 
shop, tent, railroad boxcar, boat, or room in any hotel, 
motel auto court, or apartment for the exhibition and 
sale of such goods, wares, and merchandise. The 
definition of transient merchant excludes (a) persons, 
firms or corporations who exhibit samples only for the 
purpose of securing orders for future delivery-, (b) sales 
at public auctions regulated by the provisions of the 
Police Code and Part III of the Municipal Code, and (c) 
the sale of Christmas trees and pumpkins. 

• The amended Section 250 would require all transient 
merchants to obtain a hcense from the City and provides 
for enforcement of Article 3 provisions by the issuance of 
administrative citations, except as provided in Section 
258. Section 252 contains the requirements for applying 
for a transient merchant license. The proposed new 
Section 258 would suspend these sections for all 
transient merchants, including those occupying space at 
Moscone Center and Bill Graham Civic Auditorium as 

BOARD OF SUPERVISORS 
BUDGET, ANALYST 



Memo to the Finance and Labor Committee 

May 10. 2000 Finance and Labor Committee Meeting 



originally proposed, and other locations, thereby 
eliminating the requirement that transient merchants 
obtain a license during the suspension period. 

• The amended Section 253 would reduce the quarterly 
license fee from $500 to $150 and eliminate the Gross 
Receipts tax during the suspension period. Under the 
proposed new Section 258, transient merchants would 
not be required to obtain a license during the suspension 
period, and therefore, would not be subject to the 
quarterly license fee during the suspension period. 

• The amended Section 254 would eliminate the 
requirement that transient merchants file quarterly 
reports with the Tax Collector during the suspension 
period denned in Section 258. Under the proposed new 
Section 258, the suspension period would commence on 
the effective date of the subject Ordinance and would 
end thirty days after a vote by the Board of Supervisors 
for its repeal. 

• The amended Section 255 would require all transient 
merchants who are required to obtain a license to post a 
$5,000 bond. Under the proposed new Section 258, all 
transient merchants are exempted from the requirement 
to post a $5,000 bond during the suspension period. 

• The amended Section 257 would eliminate criminal 
sanctions for violations of Article 3 during the 
suspension period. 

• The proposed new Section 258 would eliminate the 
licensing requirements for all transient merchants, 
including those who occupy space at Moscone Center, 
Bill Graham Civic Auditorium, and other locations, 
during the suspension period. The suspension period 
would commence on the effective date of this ordinance 
and end thirty days after a vote by the Board of 
Supervisors for its repeal. 

In summary, the Finance and Labor Committee 
recommended approval of several Ordinances amending 
Part III, Article 3, Sections 250, 251, 252, 253, 254. 255, 
and 257 of the Municipal Code (Business and Tax 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

3 



Memo to the Finance and Labor Committee 

May 10, 2000 Finance and Labor Committee Meetin-j 

Regulation Code) on May 3, 2000. These amended sections 
would (a) define transient merchants as temporary 
businesses selling and delivering merchandise, goods, and 
wares in the City for less than seven days in any calendar 
year, (b) require transient merchants to obtain licenses, in 
accordance with Section 258, (c) reduce quarterly license 
fees from $500 to $150, eliminate the Gross Receipt- tax 
eliminate the quarterly reporting requirement to the Tax 
Collector, and eliminate the $5,000 bond requirement 
during the suspension period as defined by Section 258, and 
(d) eliminate criminal sanctions for violations of Article 3 
during the suspension period and establish administrative 
citations to enforce Article 3 provisions. 

This proposed Ordinance substitutes a new Section 258 
which would eliminate the licensing and bonding 
requirements contained in Sections 250, 252, and 2", 
all transient merchants, including transient merchants 
occupying space at Moscone Center. Bill Graham Civic 
Auditorium, and other locations, during the suspension 
period. Therefore, transienl merchants would not be 
required to obtain a license, pay the quarterly license fee, or 
post a bond during the suspension period. The suspension 
period would commence on the effective date of the 
proposed Ordinance and would end thirty days after a vote 
by the Board of Supervisors for its repeal. 

Comments: 1. The proposed changes to the regulations governing 

transient merchants in the amended Sections 250. 252, 253, 
254, 255, and 257 would be in effect during the suspension 
period. Repeal of the subject Ordinance (File 00-0439) 
would end the suspension period thirty days after a vote by 
the Board of Supervisors if the Board of Supervisors voted 
for its repeal. The subject Business and Tax Regulations 
Code Sections, which were in effect prior to the 
commencement of the suspension period, would be re- 
established thirty days after the repeal of the proposed 
suspension period if the Board of Supervisors were to vote 
for its repeal. Therefore, the previous licensing, bonding, 
and reporting requirements and applicable fees would be 
reinstated for all transient merchants. 

2. The Budget Analyst reported, in his report to the 
Finance and Labor Committee on April 26. 2000. that the 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

k 






Memo to the Finance and Labor Committee 

May 10. 2000 Finance and Labor Committee Meeting 

Tax Collector's Office collected a total of $41,234 from 
transient merchant quarterly license fees and Gross 
Receipts taxes in FY 1998-1999. As of March 31, 2000, the 
Tax Collector's Office collected approximately $16,000 from 
transient merchant fees and taxes for FY 1999-2000. Based 
on revenues for the first 9 months of FY 1999-2000, the 
Budget Analyst projected that transient merchant fees and 
taxes for FY 1999-2000 would be approximately $21,333. 
Approval of the proposed Ordinance would suspend 
transient merchant license and fee requirements, resulting 
in a reduction of revenue to the City from such fees of 
approximately $21,333 to $41,234 annually. 

Recommendation: Approval of the proposed Ordinance is a policy matter for 
the Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 10, 2000 Finance and Labor Committee Meeting 

Items 2 and 3 - Files 00-0680 and 00-0745 
Departments: 



Items: 



Amounts: 



Source of Funds: 



Description: 



Department of Parking and Traffic (DPT) 

Parking Authority 

Mayor's Office of Public Finance 

File 00-0680: Ordinance approving the issuance of Lease 
Revenue Bonds in an amount not to exceed $8,500,000 by 
the Parking Authority to finance the construction of the 
North Beach Parking Garage Project, approving the 
execution and delivery of a Project lease between the 
Parking Authority, as lessor, and the City, as lessee 
(including certain indemnification provisions therein), 
approving the form and circulation of an official 
statement relating to such bonds, authorizing the 
payment of certain costs of issuance from the proceeds of 
such bonds, correcting the legal title to the property, 
ratifying previous actions taken in connection with the 
foregoing matters, and authorizing the taking of 
appropriate actions m connection therewith 

File 00-0745: Ordinance appropriating $1,400,000 from 
interest earnings and project balances in the 1994 
Parking Meter Revenue Bond Fund to fund Phase 1 of the 
construction of the North Beach Parking Garage Project. 

$8,500,000 - Lease Revenue Bonds (subject to later 
appropriation by the Board of Supervisors) 

1,400,000 - Interest Earnings and Project Balances 
Appropriated for the Proposed Project 

Lease Revenue Bond Proceeds 

Interest Earnings and Project Balances from the 1994 
Parking Meter Revenue Bond Fund 

Under the proposed legislation (File 00-0680), the 
Parking Authority is requesting that the Board of 
Supervisors approve the issuance of $8.5 million of lease 
revenue bonds and the related necessary documents in 
order to finance the construction of the North Beach 
Parking Garage. The proposed accompanying legislation 
(File 00-0745) requests that the Board of Supervisors 
approve appropriation of an additional $1.4 million to be 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

6 



Memo to Finance and Labor Committee 

May 10, 2000 Finance and Labor Committee Meeting 



used to finance the initial three months of construction 
and related architectural and project management costs 
for the North Beach Parking Garage, prior to the issuance 
and appropriation of the proposed $8.5 million lease 
revenue bonds. 

In November of 1987, voters approved Proposition F 
which authorized the Parking Authority to issue lease 
revenue bonds to fund the construction of parking lots 
and parking garages in certain San Francisco 
neighborhoods. Although there was no specific dollar 
amount set forth in Proposition F for a North Beach 
Garage Project, the North Beach/Broadway area was one 
of the eight specific areas authorized for construction of a 
parking lot or garage. As stated in the November of 1987 
voter handbook, Proposition F requires that the Parking 
Authority lease the parking garages to the City and that 
the City make the lease payments on the Lease Revenue 
Bonds from the City's General Fund. In accordance with 
Proposition F, the General Fund would then be 
reimbursed from the parking revenues which accrue to 
the City's Offstreet Parking Fund (now known as the 
Parking Revenue Fund). The Parking Revenue Fund 
currently receives parking revenues primarily from City- 
owned parking lots, garages and parking meters. 

The proposed North Beach Parking Garage would be 
located at 735-755 Vallejo Street, between Stockton Street 
and Turk Murphy Alley (Lots 23 and 25 in Assessor's 
Block 147). Lot 23 previously contained a two-story 
garage, known as the North Beach Parking Garage and 
Lot 25 contained a surface parking lot. The previous 
North Beach Parking Garage was a privately-owned and 
operated, self-parking facility with 48 parking spaces 
delineated by painted lines. The adjacent parking lot had 
34 parking spaces delineated by painted lines. The site 
has an overall area of approximately 18,906 square feet. 
In total, the North Beach Parking Garage and Lot had 82 
parking spaces available to self-parkers. If the Garage 
and Lot were filled with vehicles parked by valets, who 
were able to park cars more densely than the areas 
delineated by painted lines, then the Garage and Lot had 
a capacity of approximately 115 vehicles, according to Mr. 
Ron Szeto of the Department of Parking and Traffic. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

7 



Memo to Finance and Labor Committee 

May 10, 2000 Finance and Labor Committee Meeting 



Currently, Police Officer vehicles are parked on the site 
(see Comment No. 7 for additional details). 

In 1992, the Parking Authority, using parking revenues 
from the Offstreet Parking Fund, as appropriated by the 
Board of Supervisors (File 101-88-117), purchased the 
privately-owned North Beach Parking Garage and the 
adjacent parking lot for approximately $4.7 million in 
anticipation of constructinu a City parking garage for 
public use. In 1993, DPT contracted with Tai Associates 
at a cost of approximately $250,000 for the design of a 
seven-level, 330 space self-parking garage with the 
intention of receiving either a variance from the height 
and bulk restrictions of the North Beach RH2 residential 
zone or a rezoning of the property. However, after several 
years of public meetings and efforts by DPT to earn 
approval of the proposed design, such permission was 
denied by the Planning Commission because the 
neighbors objected to the size of the structure. 

In 1997, DPT decided to obtain a new scaled down design 
from the Department of Public Works' Bureau of 
Architecture at a cost of $360,000 for a four-story, 203 
space self-parking garage, including 11 bicycle parking 
spaces, which was within the height and bulk limits 
defined for the RH2 zone. Mr. Szeto advises that if the 
garage were filled with vehicles parked by valets, who are 
able to park vehicles more densely than the areas 
delineated by painted line.-, the proposed new North 
Beach Parking Garage would have a capacity of 
approximately 300 vehicles. The proposed design was 
approved by the Planning Commission in November of 
1997 and the Capital Improvement Advisory Committee 
(CIAC) in December of 1997. 

According to Mr. Szeto. DPT demolished the old North 
Beach Parking Garage in April of 1998 at a cost of 
$232,447 with the proceeds from the Parking Authority s 
Parking Meter Revenue Bonds. Series 1994. Following 
demolition. DPT paved the former Garage area, thereby 
joining it to the existing adjacent parking lot to serve as 
one paved parking lot. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

8 



Memo to Finance and Labor Committee 

May 10, 2000 Finance and Labor Committee Meeting 

Total Project Cost: $15,947,093 



Attachment I, provided by Mr. Szeto includes a summary 
budget, which identifies both the revenues sources and 
expenditures for the North Beach Parking Garage Project. 
As shown in Attachment I, total costs of $6,014,759 have 
been incurred on this Project to March of 2000. These 
costs have been paid from appropriations totaling 
$6,047,093 from the Parking Revenue Fund ($5,418,499) 
and from previously authorized 1994 Parking Meter 
Revenue Bonds ($628,594). 

In addition to the $4,685,000 which DPT paid to purchase 
the property in 1992, an additional $1,329,759 in costs 
($6,014,759 total expenditures incurred, less $4,685,000 
acquisition costs) for the contractor and in-house Garage 
plans and designs, demolition of the previous garage, 
Department of Building Inspection (DBI) Plan Check and 
Permits, construction management and art enrichment 
have already been incurred on this project. 

Additional project costs of $7,937,517, including 
$5,986,312 for the construction, are identified in 
Attachment I, for a total direct project cost of $13,952,276, 
including the amounts previously expended. 

However, Attachment I only identifies $6,505,183 of the 
total requested $8,500,000 from the Series 2000 Lease 
Revenue Bonds, which are the subject of the proposed 
request. As shown in the footnote on Attachment I, the 
$6,505,183 is the minimum amount needed from the $8.5 
million Lease Revenue Bonds to finance the balance of the 
Project. Therefore, the total actual project costs are 
$15,947,093 ($13,952,276 direct project costs as shown in 
Attachment I plus $1,994,817 of additional costs 
associated with the $8.5 million Lease Revenue Bond). 

As shown in Attachment II. provided by Ms. Karen Ribble 
of the Mayor's Office of Public Finance, based on 
conservative interest rate assumptions, approximate ly 
$6,608,032 of the $8.5 million Lease Revenue Bonds are 
estimated to be available for the project, or approximately 
$102,849 more than the amount shown in Attachment I, 
However, Ms. Sarah Hollenbeck of the Mayor's Office of 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

9 



Memo to Finance and Labor Committee 

May 10, 2000 Finance and Labor Committee Meeting 

Public Finance advises that the proposed ordinance 
authorizes the issuance of up to $8.5 million of Lease 
Revenue Bonds for the North Beach Parking Garage and 
depending on the rates of interest at the time of issua 
only the actual amount of bonds needed for the proposed 
project will be issued. The difference of $1,891,968 ($8.5 
million Lease Revenue Bonds less $6,608,032 available 
for the project) is the estimated costs of issuance of the 
bonds, the underwriter's discount and funding of a 
capitalized interest fund and debt service reserve fund for 
the proposed Lease Revenue Bonds, as identified in 
Attachment II. According to Ms. Ribble, these costs 
include 18 months of capitalized interest on the bonds and 
a debt service reserve that could be used to pay for the 
final year of debt service on the lease revenue bonds. Ms. 
Ribble notes that these are estimates since the actual 
interest costs, time period and issuance expenses cannot 
be determined precisely until the bonds are actually sold. 

Comments: 1. According to Ms. Lisa-Anne Wong of the City 

Attorney's Office, there was a lawsuit against the City 
concerning the North Beach Parking Garage filed by a 
community organization called Snarled Traffic Obstructs 
Progress (STOP). STOP sued the City with charges of 
improper environmental review and violation of the 
Planning Code. On July 23, 1998. the City won the 
lawsuit in the Trial Court. However. STOP appealed this 
decision to the State Court of Appeals and on August 31, 
1999. the City won this appeal. Subsequently. STOP 
petitioned the State Court of Appeals for rehearing, which 
was denied by the Court on September 23, 1999. STOP 
then filed a petition with the State Supreme Court to 
review the matter, and on November 23, 1999 the 
Supreme Court of California found in favor of the City. 
Ms. Wong advises that STOP cannot seek rehearing in 
the State Supreme Court on this matter, or seek review in 
the U.S. Supreme Court, and therefore this lawsuit is 
over. 

2. Mr. Szeto provided Attachment III. which contains a 
list of the bidders and the amounts bid for the 
construction of the North Beach Parking Garage. As 
shown in Attachment III. the selected bidder is MH 
Construction Management Co.. a local San Francisco 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

10 



Memo to Finance and Labor Committee 

May 10, 2000 Finance and Labor Committee Meeting 



contractor, at a cost of $5,986,312. Mr. Szeto advises that 
the MH Construction Management Co. bid was the lowest 
responsive and responsible bidder because the two lower 
bidders did not meet the Human Rights Commission's 
(HRC) requirements. 

3. Mr. Szeto advises that in 1994 the Parking 
Authority issued a $25 million bond to fund certain 
garage projects, including the San Francisco General 
Hospital Garage, the St. Mary's Square Garage 
renovation, the Polk/Bush Garage settlement costs and 
the demolition costs for the North Beach Garage. 
According to Mr. Szeto, of the original $25 million bond 
proceeds, it is estimated that approximately $1.4 million 
of unspent funds and earned interest is currently 
available to finance the initial three-month period of the 
North Beach Garage Project construction, which would 
begin as soon as appropriation of the $1.4 million of funds 
is approved. Mr. Szeto estimates that this initial three- 
month period would extend from approximately early 
June of 2000 through August of 2000. Mr. Szeto estimates 
that the construction of the new Garage will take 
approximately one year to complete, with the new North 
Beach Parking Garage anticipated to open for revenue 
operation by July of 2001. Mr. Szeto reports that the DPT 
will begin a competitive bid process during the Summer of 
2000 to select the operator for the new Garage. The 
agreement with the parking operator will be subject to 
the Board of Supervisors approval. 

4. According to Mr. Szeto, the proposed new North Beach 
Parking Garage would have a total of 203 self-parking 
spaces, which is an increase of 121 parking spaces over the 
82 self-parking spaces available in the previous Garage. In 
addition, Mr. Szeto advises that the new Garage is 
anticipated to have 11 secure bicycle parking spaces. If 
valet parking is used, the Garage would have 
approximately 300 parking spaces, an increase of 185 valet 
parking spaces over the approximately 115 available in 
the old Garage. 

5. Assuming a total North Beach Garage Project cost 
of $15,947,093, the Budget Analyst notes that the 203 
self-parking spaces will cost approximately $78,557 each. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

11 



Memo to Finance and Labor Committee 

May 10, 2000 Finance and Labor Committee Meeting 



If valet parking is used, the estimated 300 parking spaces 
would cost approximately $53,157 each. Mr. Szeto advises 
thai the last public parking facility that was built in San 
Francisco was the San Francisco General Hospital 
Parking Garage, constructed in 1995, at a total cost of 
$-17,138 per parking space. Therefore, the proposed North 
Beach Garage Project will be approximately two to three 
times more expensive per space to construct than the San 
Francisco General Hospital Parking Garage. Mr. Szeto 
advises that the higher cost per space for the proposed 
North Beach Parking Garage is due to the higher land 
acquisition cost, the complexity of staging the 
construction in North Beach, the difference in the 
economies of scale between the two parking facilities and 
the increasing cost of construction and development over 
the past five years. 

6. Mr. Szeto advises that valet parking results in both 
higher revenues and costs. Initially, the Garage will have 
self-parking spaces only, and depending on the demand 
and operational issues could be expanded to valet parking 
at a later date, according to Mr. Szeto. Ms. Ribble advises 
that the proposed issuance of up to $8.5 million in Lease 
Revenue Bonds assumes that the Garage will be used for 
the more conservative 203 self-parking vehicles. 

7. Mr. Szeto reports that the parking lot is currently being 
used by the Police Department for parking approximately 
40 Police and private vehicles in connection with the 
adjacent Central Police Station Mr. Szeto advises that 
this is based on an informal agreement between the DPT 
and the Police Department and neither the Parking 
Authority nor the DPT receives any revenues from the 
Police Department for their use of this parking lot. Mr. 
Szeto notes that prior to the demolition of the old North 
Beach Parking Garage, the Police Department parked 
approximately 22 private vehicles in the old North Beach 
Parking Garage. Mr. Harry Quinn of the Real Estate 
Department reports that once the construction begins on 
the new North Beach Parking Garage, the Central Police 
Station will use approximately 22 spaces in the City- 
owned Yallejo Street Garage, which is immediately 
opposite the proposed new North Beach Parking Garage. 
Mr. Quinn reports that the Police will likely occupy these 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

12 



Memo to Finance and Labor Committee 

May 10, 2000 Finance and Labor Committee Meeting 



spaces until construction of a new Central Police Station 
is completed. 

8. According to Ms. Sarah Hollenbeck of the Mayor's 
Office of Public Finance, the proposed issuance of up to 
$8.5 million in Lease Revenue Bonds for construction of 
the North Beach Parking Garage Project would be the 
first bond issuance authorized under Proposition F. Ms. 
Hollenbeck advises that these Lease Revenue Bonds are 
anticipated to be sold in late June of 2000. According to 
Ms. Hollenbeck, the $8.5 million Lease Revenue Bond 
funds may be included and placed on reserve in the 
upcoming FY 2000-01 budget, since a separate 
appropriation approval of such funds is required by the 
Board of Supervisors. 

9. Ms. Ribble provided Attachment IV, which identifies 
the net revenue coverage over the base rental payments 
for the proposed $8.5 million Lease Revenue bonds. Ms. 
Ribble notes that these are draft documents since the 
actual interest costs, time period and related rental 
payments cannot be determined precisely until the bonds 
are actually sold. Ms. Ribble advises however, that the 
interest rate is estimated at 6.5 percent over a 25-year 
bond period. 

As shown in Attachment IV, if the proposed Lease 
Revenue Bonds are sold in a principal amount of $8.5 
million, at an estimated annual interest rate of 6.5 
percent over a 25-year period, the City's total principal 
and interest cost will be $17,672,077, including $8.5 
million of principal costs and $9,172,077 of interest 
payments. Ms. Ribble advises that the average annual 
debt service payment will total $706,883. 

As indicated in Attachment IV, the projected parking 
revenues from the North Beach Parking Garage, less the 
parking taxes and the operating expenses, are not 
projected to cover the base annual rental payments on the 
Lease Revenue Bonds for seven years (Year 2 through 
Year 8. However, due to the fact that interest on the 
bonds will be capitalized for six months beyond the 
projected completion date for the project, the garage 
should generate revenues in year 2 that will not be 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

13 



Memo to Finance and Labor Committee 

May 10, 2000 Finance and Labor Committee Meeting 

required for debt service. Such revenues are expected to 
cover the shortfall in the following years. During the 
remaining years, a surplus of net revenues from the 
Garage is projected to occur. Over the 25-year life of the 
bonds, the cumulative surplus in revenue is projected to 
be $3,025,809. However, Ms. Hollenbeck advises that 
these projections are based on 1997 estimates of parking 
demand and rates for the North Beach Garage and that 
these projections therefore reflect conservative estimates 
uf revenues. 

10. The Budget Analyst notes that, in accordance with 
Proposition F and the proposed legislation, the City's 
General Fund will be responsible for paying the base 
rental payments on the $8.5 million lease revenue bonds. 
In turn, the City's Parking Revenue Fund, which will 
receive the nel operating revenues from the North Beach 
Parking Garage, will reimburse the City's General Fund 
for these payments 

11. Ms. Theresa Alvarez of the City Attorney's Office 
reports that the proposed legislation includes a quit claim 
provision that is necessary because when the Parking 
Authority purchased the North Beach Parking Garag* in 
1992, the grant deed was supposed to vest legal title with 
the Parking Authority. However, the grant deed 
inadvertently vested Legal title with the City and County 
of San Francisco. The proposed quit claim provision will 
correct this error by transferrins the legal title from the 
City and County of San Francisco to the Parking 
Authority. 

Recommendation: Approval of the proposed two ordinances is a policy 

matter for the Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

14 



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*'... ..TOTAL SOURCES OF FUNDS 8.60Q.0Q00Q 



Ef ;■» USESOF^NPS 

£' :■'■:■ : Project Construction Fund -Gross Deposit 6,808,031.7^ 

p- ';. CapltalLza* interest Fund -Grosa Deposrt 7M.543.2B 

[£; .'■' Debt Service Reserve Fund 724,855.00 

fc\ ■'■;' Underwrfte/S'.tDlscount (9 1.600% Qf par .127.500:00 

&'•■ Coats Oflaatiartce & Rounding . __ 296.10000 

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COSTS FINANCED IN PROJECT FUND 



Project Funds Available . . 6,608,031.71 



Page 1 of 5 

4/25/00 . ROSS FINANCIAL 

16 •"■ "• ' 



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18 



Memo to Finance and Labor Committee 

May 10, 2000 Finance and Labor Committee Meeting 

Item 4 - File 00-0574 



Department: 
Item: 



Description: 



Fire Department 

Ordinance amending Part II, Chapter IV, of the San 
Francisco Municipal Code (Fire Code) by amending 
Section 106 to increase fees for services and by amending 
Article 90 to require fire pumps in buildings 200 feet 
(approximately 20 stories) or more in height to be capable 
of operating on emergency power. 

Section 106.18 of the Fire Code requires that the Chief of 
the Fire Department, no later than April 1 st of each year, 
file a report with the Controller concerning "the revenues 
received from each type of fee collected by the Fire 
Department, the costs, both direct and indirect, incurred 
m providing the services for which the fee is assessed, the 
anticipated costs for the ensuing Fiscal Year and the rates 
which would be necessary to support such cost for each 
type of fee." Section 106.18 further specifies that the 
Controller shall file the report with the Board of 
Supervisors by no later than May 15 th of each year, and 
that "the Board of Supervisors shall, by ordinance, 
establish or adjust the rates for any Fire Department 
fees." Section 106.18 also specifies that "The rates set 
shall be equal to, but not greater than, the rates 
necessary to support the costs of providing the services for 
which each fee is assessed." 



The proposed ordinance would increase a total of five 
inspection fees and five plan review service fees, as shown 
in Attachment I to this report provided by the Fn - e 
Department, by amounts ranging from a five percent 
increase to a 32.1 percent increase. According to the Fire 
Department, the weighted average of the fee increases is 
six percent. 

Approval of the proposed ordinance would also amend 
Article 90-Standards of the Fire Code by amending 
Section 9001.1.2. which governs requirements for water 
supply pumps in buildings 200 feet or more in height 
above the lowest level of Fire Department vehicle access 
(normally, ground level). Section 9001.1.2 currently 
specifies that such buildings shall have a minimum of two 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

19 



Memo to Finance and Labor Committee 

May 10, 2000 Finance and Labor Committee Meeting 



fire pumps, and further specifies the technical 
requirements of the pumps. The proposed ordinance 
would require that each pump shall be capable of 
operating on emergency power. 



Comments: 



1. Assistant Deputy Chief (ADC) Gary Massetani, the 
Citj - Fire Marshall, reports that the subject fees were 
last increased effective July 1. 1999. Attachment II to this 
report is a memorandum provided by ADC Massetani 
explaining the Fire Department's need to increase fees in 
order to cover the cost of increased Fire Department 
resources already in place. 

2. Mr. Joe Matranga of the Controller's Office advises that 
the Controller has reviewed the Fire Department - 
proposed fee schedule for FY 2000-01 and concurs with 
the proposed increase. Mr. Matranga has also stated that 
the Controller has included the fee increases in the Fire 
Department's budgeted FY 2000-01 revenues. As shown 
in Attachment II, the dollar value of the increase in 
revenues due to the fee increase is $384,750. 



Recommendation: 



3. ADC Massetani has advised the Budget Analyst that 
the Fire Department is requesting the amendment to the 
water supply pump provision to clarify the intent of the 
Fire Code to that those pumps are capable of operating on 
emergency power 

Approve the proposed ordinance. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

20 



Notes I Section 



Description | Existing Fee | Proposed Fee| $ Increase | % Increase 



1 


106.3 


Reinspection of Violation 


S62 


$74 


$12 


19.4 
















2 


106.7 


Consultation Fee 


$56 


$74 


$18 


32.1 
















3 


106.8 


High-Rise Inspection 


5.53/1 OOOs.f. 


6.00/1 OOOs.f. 


.47/1 OOOs.f. 


8.5 
















4 


106.9 


Back Check Plan Review 


n/a 


$52/hr 


n/a 


n/a 


















106.10 


Field Inspection 


$55/hr 


$64/hr 


$9/hr 


16.4 
















5 


106.11 


Pre-Application Meeting 


$92/ 2 hrs 


$104/ 2 hrs 


$12/2 hrs 


13.0 


















106.15 


Overtime 


$57/ fir 


$70/ hr 


$13/ hr 


22.8 
















6 


106.17 


Waterflow Information 


$23/ flat fee 


$26/ flat fee 


$3/ flat fee 


13.0 
















7 


106.17 


Waterflow Hydrant Test 


$92/ flat fee 


$104/ flat fee 


$12/ flat fee 


13.0 
















8 


Table 
106-B 


Plan Review 


n/a 


n/a 


n/a 


5.0 

















# 1 This fee is based upon time required for inspection of property to determine whether 

or not a fire code violation has been abated. 
#2 Consultation Fee is charged for a survey of a building for compliance with applicable 
codes for existing or proposed use. This fee has been raised to conform to violation 
reinspection service fee which is what this service most closely resembles. 

# 3 This fee is charged, as permitted by State law, to recover costs of providing the 

service of annual high-rise building inspections. These inspections are mandated by 
the California Health & Safety Code. 

# 4 This is a new fee to recover the cost of providing plan review services when a 

previously approved plan is revised due to conditions in the field, therefore requiring an 
additional plan review. 

# 5 This fee is for meetings requested by designers for plan review services before plans 

are submitted. 

# 6 This fee is for hydraulic information requested by designers, when this 

information is available through documents at the Fire Dept. Plan Check Unit. 

# 7 This fee is charged for hydraulic information when requested by designers. This 

fee covers the cost of an actual street hydrant test to provide accurate hydraulic 
information. 

# 8 The increase is based on the projected increase in the cost of providing the 

plan review service. 

The total projected increase in revenue amount to be collected by the Fire Department's 
Bureau of Fire Prevention is $ 384,750.00 



Source: S.F. Fire Department 
21 



Suboject 


Description 


99/00 Budget 


Controller's 
Projected Actual 
99/00 Revenue 


Project FY 00/01 




60667 


Fire Plan Checking 


$ 1,150.000 00 


S 1,271.059.00 


S 1.532.850 00 












60668 


Fire Inspection Fees 


390,000.00 


547,387.00 


600.000 00 












60670 


High Rise Fire Inspection Fee 


622,500 00 


530,67300 


639,000.00 












60671 


SFFD Tx Coll Renewal Fee 


450.000 00 


453.81800 


450,000 00 












60672 


SFFD Onng Filing-Posting Fee 


160,000 00 


181,395.00 


160.000.00 












60673 


Fire Code Reinspection Fee 


30,000 00 


22.771.00 


30.000 00 












60699 


Other Public Safety Charges 


40,000 00 


49.997 00 


30.000 00 














Totals 


2.842.500 00 


3.057.100 00 


3,441,850.00 














FY 00/01 Revenue Increase 






384,750 00 













Discretion | Cost of Services FY 99/00~ 



Suboject 



FY 00/01 



60667 


Fire Plan Checking 




1 .317.515 00 


1.516,836 00 












60668 


Fire Inspection Fees 




572.150 00 


603,636 00 












60670 


High Rise Fire Inspection Fee 




633,07800 


668,053 00 













For Fiscal Year 2000-2001 , these fees were based upon estimated revenues for Fiscal 
Year 1999-2000 with proposed fee increases. 

The purpose of the fee increase is allowed by the California State Government Code to 
support the cost of providing the service for which each fee is charged 

The projected budget includes an increase in personnel to provide the services for which 
these fees are charged. 



Source: S.F. Fire Department 



22 



Memo to Finance and Labor Committee 

May 10, 2000 Finance and Labor Committee Meeting 

Item 5 - File 00-0735 

1. The proposed ordinance would amend Section 16.157 of the 
Administrative Code to approve the City's FY 2000-2001 Health Service System 
plans and rates of contribution, as adopted by the Health Service Board, to be paid 
by the members of the System. The members of the System are employees, retirees, 
and surviving spouses of former employees and retirees of the City and County of 
San Francisco, the San Francisco Unified School District, and the Community 
College District. 

Health Plans 

2. The Board of Supervisors previously adopted a resolution (File 00- 
0275) setting the City's contribution to the Health Service Fund for FY 2000-2001 at 
$192.23 per month for each member. The City's contribution was established in 
accordance with Charter Sections A8.423 and A8.428, which set the average 
contribution rate based on a survey of the 10 most populous counties in California 
(excluding San Francisco). The City's contribution of $192.23 per month ($2,306.76 
annually) represents an increase of $11.38 per month, or approximately 6.3 percent, 
from the FY 1999-2000 rate of $180.85 per month ($2,170.20 annually). 

3. Once the City's contribution is established, member contributions are 
calculated by the Health Service System actuary, Towers Perrin, Consulting 
Actuaries, in order to ensure that contributions from all sources will be adequate to 
support anticipated claims for the upcoming fiscal year. The proposed ordinance 
would establish member contribution rates for FY 2000-2001 in accordance with 
Charter Sections A8.421 and A8.422. Charter Sections A8.421 and A8.422 require 
approval by three-fourths of the members of the Board of Supervisors after the 
Board has secured an actuarial report of the costs and effects of any proposed 
change in the benefits of the Health Service System or rates of contribution. 
Contribution rates vary according to: (1) whether or not a member is an active 
employee, retired employee, or surviving spouse; (2) whether or not that individual 
has Medicare coverage; and (3) which of the City's four health plans that individual 
elects to join. The actuarial report and details of the member contribution rates are 
contained in the file of the Clerk of the Board. 



4. City Health Plan (which is administered by the City's Health Service 
System), Kaiser Foundation Health Plan, Heath Net, and Pacific Care (all HMOs) 
will be offered in FY' 2000-2001. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

23 



Memo to Finance and Labor Committee 

May 10, 2000 Finance and Labor Committee Meeting 

5. Changes to the City Health Plan benefits in FY 2000-01 include: 



The lifetime maximum benefit was increased from $1 million to $2 

million, 

Mental health benefits were changed to comply with the new State 

law, 

Newborns will be covered for 30 days regardless of parental election. 

Dependent children will be covered to age 25 regardless of student 

status, 

Occupational and physical therapy will be limited to 60 visits per year. 

The out-of-pocket limit on out-of-area charges was reduced from $4,000 

to $3,750, 

An out-of-pocket limit of $7,500 was placed on out -of- network charges, 

Benefit denial by Medicare will no longer conclusively determine plan 

benefits, and 

The deductible for out-of-network services was reduced from $500 to 

$250. 



6. 
members: 



The following changes were made m benefit- for FY 2000-01 HMO 



• The copay for allergy shots was set at $5 for all HMOs (it had been $3 
for Kaiser), 

• Mental health benefits were changed to comply with the new State 
law, 

• The copay for use of the emergency room was set at $35 for all HMOs 
(it had been $5 for Kaiser and $25 for Health Net), and 

• Chiropractic benefits were added to all HMOs. 



7. A comparison of the FY 1999-2000 monthly rates to be paid by active 
City employees with the proposed FY" 2000-01 rates adopted by the Health Service 
Board is as shown in Table 1 on the following page. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

24 



Memo to Finance and Labor Committee 

May 10, 2000 Finance and Labor Committee Meeting 



Table 1 

Monthly Health Plan Rates to be Paid by Active City Employees 

FY 1999-2000 and FY 2000-01 



Citv Health Plan 
Single Employee 
Employee plus one dependent 
Employee plus two dependents 536.71 

Kaiser Foundation Health Plan 
Single Employee 
Employee plus one dependent 
Employee plus two dependents 

Health Net 

Single Employee 

Employee plus one dependent 

Employee plus two dependents 

PacifiCare 

Single Employee 

Employee plus one dependent 

Employee plus two dependents 



1999-2000 


2000-01 


Monthly 


Percentag* 


Monthly 


Monthly 


Increase/ 


Increase 


Rates 


Rates 


(Decrease) 


(Decrease" 


$110.61 


$110.81 


$0.20 


0.2% 


317.75 


322.13 


4.38 


1.4% 


536.71 


546.06 


9.35. 


1.7% 


3.81 


0.00 


(3.81) 


(100%) 


182.39 


190.34 


7.95 


4.4% 


330.62 


348.32 


17.70 


5.5% 


2.00 


0.00 


(2.00) 


(100%) 


170.36 


185.33 


14.97 


8.8% 


311.13 


339.68 


28.55 


9.2% 


2.00 


0.00 


(2.00) 


(100%) 


161.64 


180.63 


18.99 


11.7% 


295.15 


333.26 


38.11 


12.9% 



8. A comparison of the FY 1999-2000 monthly rates to be paid by retired 
City employees who are enrolled in the Health Service System with the proposed 
FY 2000-01 rates adopted by the Health Service Board is shown as Table 2 on the 
following page. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

25 



Memo to Finance and Labor Committee 

May LO, 2000 Finance and Labor Committee Meeting 

Table 2 

Monthly Health Plan Rates to be Paid by Retired City Employees 

FY 1999-2000 and FY 2000-01 



Citv Health Plan 

Single Subscriber (w/o Medicare) 
Subscriber plus one dependent 

(both w/o Medicare) 
Single Subscriber (w/ Medicare) 
Subscriber plus one dependi in 

(both w/ Medicare) 



1999-2000 2000-01 Monthly Percentage 

Monthly 
Rates 



$110.61 
317.75 

65.11 
228.69 



Monthly Increase/ Increase 
Rates (Decrease) (Decrease) 



5110.81 
322.13 

65.31 
249.90 



$0.20 
4.38 

0.20 
21.21 



0.2% 
1.4% 

0.3% 
9.3% 



Kaiser Foundation Health Plan 



Single Subscriber (w/o Medicare) 
Subscriber plus one dependent 

(both w/o Medicare) 
Single Subscriber (w/ Medicare) 
Subscriber plus one dependent 

(both w/ Medicare) 



$3.81 


$0.00 


($3.81) 


(100%) 


182.39 


190.34 


7.95 


4.4% 


0.00 


0.00 


0.00 


N/A 


13.62 


60.11 


46.49 


341.3% 



Health Net 

Single Subscriber (w/o Medicare) $2.00 $0.00 ($2.00) (100%) 

Subscriber plus one dependent 170.36 33 11.97 8.8% 

(both w/o Medicare) 
Single Subscriber (w/ Medicare) 0.00 0.00 0.00 N A 

Subscriber plus one dependent 35 17 111 75.78 l: 13.6% 

(both w/ Medicare) 

PacifiCare 

Single Subscriber (w/o Medicare) .00 $0.00 00) (100%) 

Subscriber plus one dependent 161.64 180.63 18.99 11.7% 

(both w/o Medicare) 
Single Subscriber (w/ Medicare) 0.00 0.00 0.00 \.\ 

Subscriber plus one dependent 31.54 107.98 76.44 242.4% 

(both w/ Medicare) 



9. The large increases shown above for HMO subscribers plus one 
dependent where both have Medicare are dictated largely by the change in the 
formula by which HMOs are reimbursed for Medicare members by the Federal 
Health Care Financing Administration (HCFA). Until recently. HCFA 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 10, 2000 Finance and Labor Committee Meeting 

reimbursement has enabled the HMOs to deliver health care to Medicare retirees at 
reasonable cost; however, the Federal Balanced Budget Act of 1997 changed the 
formula used to calculate the HMOs' reimbursements. The result was that HCFA 
reimbursements are no longer keeping pace with the cost of health care, and the 
HMOs are having to make up the shortfall by increasing premiums. 

Dental Plan Benefits 

10. The Health Service Board has approved the continuance of Delta 
Dental of California, the PMI DeltaCare Dental Plan and the Pacific Union Dental 
Plan. According to Mr. Bart Duncan of the Heath Service System, as of March 31, 
2000, a total of 26,818 active and retired employees were enrolled in the existing 
City-paid dental plans. Under the dental plans, all premiums for active City 
employees are paid by the City (there is no employee contribution). Retirees, and 
active Community College District and SFUSD employees must pay for their dental 
benefits in full according to a separate schedule. 

11. Three dental plans will continue to be offered: an indemnity plan 
administered by Delta Dental and two prepaid plans, PMI and Pacific Union. The 
City pays the cost of Dental benefits for employees, while retirees pay the full cost of 
their dental benefits. Claim experience under the indemnity dental plan dictated 
that plan costs (used by the City to fund the dental plan) should be adjusted as 
follows: costs for Transit workers should be increased by 8.5%, and costs for all 
other employees would be increased by 15%. PMI agreed to continue the existing 
rates for the year 2000-01. Pacific Union requested a 4.1% rate increase (8.7% on 
employees and no change on retirees). Benefit levels will remain the same for all 
three plans. 

12. A comparison of the FY 1999-2000 and FY 2000-01 monthly premium 
rate schedules for employer contributions of the three dental plans shown as Table 
3 on the following page. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

27 



Memo to Finance and Labor Committee 

May 10, 2000 Finance and Labor Committee Meeting 

Table 3 
Monthly Dental Plan Rates to be Paid by the City for 
Active City Employees. FY 1999-2000 and 2000-01 



1999-2000 2000-01 Monthly Percentage 



Delta Dental 

Single Employee 

Employee plus one dependent 

Employee plus two dependents 

Delta Dental (Transit 

Workers Only) 

Single Employee 

Employee plus one dependent 

Empk>3 r ee plus two dependents 

PMI DeltaCare Dental Plan 
Single Employee 
Employee plus one dependent 
Employee plus two dependents 

Pacific Union Dental Plan 
Single Employee 
Employee plus one dependent 
Employee plus two dependents 



Monthly 
Rates 

$48.05 

78.96 

118.70 



Monthly Increase/ Increase 
Rates (Decrease) (Decrease ) 



90 B0 

136.51 



$7.21 
11.84 
17.81 



15.0% 
15.0% 
15.0% 



48.05 


52.13 


4.08 


8.5% 


78.96 


85.67 


6.71 


8.5% 


118.70 


128.79 


10.09 


8.5% 


22.17 


22.17 


-0- 


0% 


36.58 


36.58 


-0- 


0% 


54.09 


54.09 


-0- 


0% 


20.40 


22.16 


1.76 


8.6% 


33.65 


36.59 


2.94 


8.7% 


49.76 


54.10 


4.34 


8.7% 



13. A comparison of the monthly premium rates to be paid by retired City 
employees and other employees who are ineligible for employer paid dental coverage 
(i.e. active employees of the Unified School District and Community College 
District) for the FY 1999-2000 and FY 2001 dental plans are shown in Table 4 on 
the following page. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

28 



Memo to Finance and Labor Committee 

May 10, 2000 Finance and Labor Committee Meeting 

Table 4 

Dental Plan Monthly Premium Rates to be Paid by Retired City Employees 

and Active Employees Who Are Ineligible for Employer Paid Coverage 

FY 1999-2000 and FY 2000-01 



Delta Dental 

Single Employee 

Employee plus one dependent 

Employee plus two dependents 

PMI DeltaCare Dental Plan 
Single Employee 
Employee plus one dependent 
Employee plus two dependents 

Pacific Union Dental Plan 
Single Employee 
Employee plus one dependent 
Employee plus two dependents 



1999-2000 


2000-01 


Monthly 


Percentag* 


Monthly 


Monthly 


Increase/ 


Increase 


Rates 


Rates 


(Decrease) 


(Decrease" 


$34.72 


$33.11 


($1.61) 


(4.6%) 


56.30 


66.22 


9.29 


17.6% 


84.04 


99.33 


15.29 


18.2% 


13.69 


13.69 


-0- 


0% 


22.59 


22.59 


-0- 


0% 


33.41 


33.41 


-0- 


0% 


13.14 


13.14 


-0- 


0% 


21.69 


21.69 


-0- 


0% 


32.07 


32.07 


-0- 


0% 



Comments: 

1. Many of the City's MOU's contain provisions whereby the City pays a 
portion of the employee's cost for the health and dental plans. Such pa3 T ments by 
the City are not reflected in the data provided by the Health Service System shown 
in the tables of this report. The majority of City workers are covered by MOU's 
which provide that the full employee premium for single employees is paid by the 
City and up to $225 of the employee premium for an employee with dependents is 
paid by the City. For example, contrary to the data shown in Table 1, a single 
employee enrolled under the City Health Plan paid nothing in FY 1999-2000 
instead of the rate of $110.61 per month and would again pay nothing under the 
proposed FY 2000-2001 rates instead of the rate of $110.81 per month. An 
employee with one dependent enrolled under the City Health Plan in FY 1999-2000 
paid $92.75 per month instead of $317.75 and would pay $97.13 per month under 
the proposed FY 2000-01 rates instead of the rate of $322.13. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

29 



Memo to Finance and Labor Committee 

May 10, 2000 Finance and Labor Committee Meeting 

2. According to Ms. Peg Stevenson of the Controller's Office, the cost of 
the City's General Fund contribution for Health Service System employer 
contribution and Dental Benefits paid on behalf of employees has increased by 
$4,668,000, or 6.9 percent, from $67,843,000 in FY 1999-2000 to $72,511,000 in FY 
2000-2001. This comparison is shown in the table below (amounts rounded to 
nearest thousand). 

FY 1999-2000 FY 2000-01 Increase 

Health Service City Match S 46,307,000 S 49.171.ihio $ 2,864,000 

Dental City Match 21.536.000 23.340,000 1 .804.000 

Total $ 67,843,000 S 72,511.000 S 4,668,000 

Recommendation: 

Since the Health Service System reports that the selection of the Health 
Service System plans and determination of the rates of member contribution for 
such plans have been conducted in accordance with the provisions of the City 
Charter, approve the proposed ordinance. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 10, 2000 Finance and Labor Committee Meeting 

Item 6 - File 00-0763 



Department: 



Department of Children, Youth and their Families 



Item: 



Grant Title: 
Grant Period: 
Source of Funds: 
Grant Amount: 
Description: 



Matching Funds: 
Indirect Costs: 



Resolution authorizing the Department of Children, Youth 
and their Families (DCYF) to accept and expend a grant in 
the amount of $528,000 from the Unites States Department 
of Agriculture (USDA) for the Mayor's Summer Food 
Service Program. 

Summer Food Service Program 

June 12, 2000, through August 18, 2000 (Ten-week period) 

United States Department of Agriculture (USDA) 

$528,000 

For over ten years, the Mayor's Office, has sponsored the 
Summer Food Service Program (SFSP) to needy children 
and youth up to the age of 17. The proposed resolution 
would authorize DCYF to accept and expend the subject 
grant of $528,000 from the USDA. Throughout the school 
year, many low-income children and youth qualify to 
receive free or reduced cost meals as students of the school 
district. Under this program, free lunches are provided at 
approximately eighty locations, including 10 Housing 
Authority facilities, 31 Recreation and Parks facilities, and 
39 community-based organizations. 

The subject grant would fund free lunches for all 
participating children and youth for ten weeks of the 
summer between June and August. SFSP would provide 
lunch at these eighty sites to over 220,000 youth per day . 

None required. 

The proposed resolution would waive the inclusion of 
indirect costs in the grant budget because they are not 
allowed by the granting agency. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 10, 2000 Finance and Labor Committee Meeting 



Budget: 



The budget for the subject grant of $528,000 for the period 
from June 12, 2000 through August 18, 2000 is as follows. 
(See Attachment I, provided by DCYF. for further budget 
details i 



Item: 


Total 


Personnel: (See Comment No. 1) 

Salaries/Wages 
Food Labor 


1.816 
27,048 


Subtotal: 


61,864 


Operating: 

Food 

Food Transportation to Sites (See Comment No. 2) 


446,600 
12.000 


Subtotal: 


458.600 


Other: 

Nonfood Supplies 

Office Supplies 

Local Transportation 

Moving 

Facilities/Utilities (See Comment No. 3) 


2,595 
891 

1,260 
240 

2,550 


Subtotal: 


7,536 


Total: 


$528,000 



Comments: 



1. The proposed grant includes funding for 36 positions 
totaling 5.65 FTE. as shown below Ms. Camille Broussard 
of the Department of Children. Youth and Families, advises 
that the temporary subject grant positions would be 
designated "G" (grant funded). 





FTE 


Personnel 


No. of 
Staff 


Days 


Hours/ 
Day 


Salary/ 
Hour 


Total 




1.0 
1.0 
1.25 

2.4 


Assistant Coordinator 
Clerical Assistant 
Site Monitors 
Site Supervisors 


1 

1 

10 
24 


11 

52 
49 


8 
8 
5 
4 


$13.00 
511.00 

$8.00 

$5.75 


$7,592 

6.424 

20.800 

27.048 


Total 


5.65 




36 




$61,864 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

32 






Memo to Finance and Labor Committee 

May 10, 2000 Finance and Labor Committee Meeting 



2. According to Ms. Broussard, the $12,000 for Food 
Transportation will be used to fund lunches during 
fieldtrips. Each of the SFSP's eighty food sites organizes 
one field trip per week during the ten-week grant period. 
For each fieldtrip, food is delivered twice, once in the 
morning for field trip participants and a hot lunch in the 
afternoon for non-participants. The food transportation is 
calculated at: $20 (cost per transport) x 80 (sites) x 7.5 
(trips/site) = $12,000. 

3. According to Ms. Broussard, the $2,550 for 
Facili tie s/Utili ties in the above budget includes janitorial 
($1,500) and telephone costs ($1,050). Ms. Broussard 
advises that the SFUSD is charging DCYF the standard 
flat rate of $500 per month for 3 months totaling $1,500 for 
janitorial services at the school sites. Telephone costs 
include installation and billing for an estimated total of 
$1,050. 

4. Attachment II is a Grant Application Information Form, 
provided by the Department of Public Health. 

5. The Department of Public Health has prepared a 
Disability Access Checklist, which is on file with the Clerk 
of the Board's Office. 



Recommendation: Approve the proposed resolution. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

33 



Attachment I 



2000 Mayor's Summer Food Program 
Estimated Budget 



Revehue^^fv^.\V^:^?^^;^.^;^r:-%^;. ^^T)^ 


j£r;'«i33*SSS KS 




Reimbursement 






# of meals Rate (per meal) 


Amount 


L'jncnes 


220.000 S 2.18 


S 47Q. 500.00 


Aamin 


220.000 0.22 


48.400.00 


Total Revenue 


S 528.000.00 


Expenses:.;--.. 


-• 
_.•--■•- - -. - - - .... 


- . 




Rate 


Cost 


Lunches 


S2.03'220.000 


446.500.00 


Site Supervision 


49 days *4 hrs/cay"S5.75/hr"24 people 


27.048.00 


Garbage Bags 


60 boxes'S8 95/box 


537.00 


Thermometers 


140*5370 


518.00 


Paper bags 


200 boxes * So. 95 


1.390.00 


Delivery-Field trip cost 




12.000.00 


Admin Salaries 


see below 


34.816.00 


Office Supplies 




891.00 


Transportation 


12 Fast passes '3mos"S35 


1.250.00 


Telephone 


(installation->-bil!) 


1 .050.00 


Rent 


3 mos " S500 


1.500 00 


Postaae 




150 00 


Moving 




240.00 


Total Expenses 




528,000.00 



Admin Salaries . 


Days 


Hrs/day 


Sa 


ary/ hr> 


Total 


Asst. Coorcmator 


73 


E 




13 00 


7.592.00 


Clerical Assistant 


73 


8 




1 V00 


6.424.00 


Site Monitors (10 oeooie; 


52 


5 




B X 


20.800.00 


Total 










S 34.816.00 



34 



Attachment II 
Page 1 of 2 

ile Number: 

(Provided by Clerk of Board of Supervisors) 

Grant Information Form 

(Effective January 2000) 

urpose: Accompanies proposed Board of Supervisors resolutions authorizing a Department to accept and 
<pend grant funds. 

he following describes the grant referred to in the accompanying resolution: 

Grant Title: Mayor ' s Summer Food Service Program 

i Department: Department of Children, Youth & Their Families 

. Contact Person: Camille Broussard Telephone: (415-)j 557-6773 "* 

. Grant Approval Status (check one): 

[ ] Approved by funding agency p} Not yet approved 

. Amount of Grant Funding Approved or Applied for: $528 , 000 

a. Matching Funds Required: $ 

b. Source(s) of matching funds (if applicable): 

a. Grant Source Agency: United States Department of Agriculture (USDA) 

b. Grant Pass-Through Agency (if applicable): California Department of Education (DOE) 

. Proposed Grant Project Summary: 

Through funding from the United States Department of Agriculture and under the 
auspices of the Mayor's Office, the Department of Children, Youth and Their 
Families provides San Francisco needy children and youth (18 years and under) 
with free meals during the summer months (June-August) . 

. Grant Project Schedule, as allowed in approval documents, or as proposed: 
Start-Date: June 12> 2 ooo End-Date: AugusC 18j 2 000 

0. Number of new positions created and funded: 35 

1 . If new positions are created, explain the disposition of employees once the grant ends? 

All positions are Temporary/Exempt; All positions are terminated at end of program. 

2a. Amount budgeted for contractual services: 

b. Will contractual services be put out to bid? 

c. If so, will contract services help to further the goals of the department's MBEAA/BE 

requirements? 



35 



d. Is this likely to be a one-time or ongoing request for contracting out? 



Attachment II 
Paee 2 of 2 



13a. Does the budget include indirect costs? 

b1. If yes, how much? S 

b2. How was the amount calculated? 



[]Yes 



T$No 



c. If no, why are indirect costs not included? 

(^ Not allowed by granting agency [ ] To maximize use of grant funds on direct services 

[ ] Other (please explain): 

14. Any other significant grant requirements or comments: 



""Disability Access Checklist"* 

15. This Grant is intended for activities at (check all that apply): 



[K] Existing Site(s) 

[ ] Rehabilitated Site(s) 

[] NewSite(s) 



Existing Structure(s) 
Rehabilitated Structure(s) 
New Structure(s) 



] Existing Program(s) or Service(s) 
] New Program(s) or Service(s) 



16. The Departmental ADA Coordinator and/or the Mayor's Office on Disability have reviewed the proposal 
and concluded that the project as proposed will be in compliance with the Americans with Disabilities Act and 
all other Federal, State and local access laws and regulations and will allow the full inclusion of persons with 
disabilities, or will require unreasonable hardship exceptions, as described in the comments section: 



Comments: 

Departmental or Mayor's Office of Disability Reviewe 
Date Reviewed: April 6. 2000 



r . Bill Kramer p>L^~^l^i 



(Name) 



Department Approval: Cedric Yap 



(Name) 



Deputy Director 



(Title) 




36 



Memo to Finance and Labor Committee 

May 10, 2000 Finance and Labor Committee Meeting 



Item 7 - File 00-0731 

Department: 

Item: 



Amount: 
Source of Funds: 
Description: 



Mayor's Office of Community Development (MOCD) 

Hearing to consider the release of reserved funds, Mayor's 
Office of Community Development (1999 Emergency 
Shelter Grants Program: File No. 99-0078), in the amount 
of $39,934 to be used for the First Response Outreach 
Team to improve access to City services for the homeless 

$39,934 

Emergency Shelters Grant Program 

The HUD Emergency Shelter Grants Program was first 
established under the Stewart B. McKinney Homeless 
Assistance Act in July of 1987. The program is designed to 
assist in (a) improving the quality of existing emergency 
shelters for the homeless, (b) making available additional 
emergency shelters, and (c) meeting the costs of operating 
emergency shelters. The goal of the program is to provide 
certain essential social services to homeless individuals so 
that those persons have access to the support services 
needed to improve their situations. 

The Mayor's Office of Community Development (MOCD) is 
responsible for administering and monitoring the 
Emergency Shelter Grants Program (ESGP). MOCD 
proposes to use $39,934 in reserved funds to expand the 
Chemical Awareness & Treatment Services' (CATS) 
Mobile Assistance Patrol (MAP). 

The CATS program operates a transportation program for 
homeless persons in San Francisco, the Mobile Assistance 
Patrol. Van transportation and outreach is provided 24 
hours a day, seven days a week to homeless persons. MAP 
services are coordinated with other City outreach teams, 
shelters, resource centers, police, and serves as backup to 
the paramedics for non-emergency transport. 

According to Mr. Jon Pon of MOCD, the proposed funding 
would be used to provide outreach training for 17 CATS 
employees, seven of which are MAP drivers, and to 
purchase equipment to improve operations of CATS. All 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

37 



Memo to Finance and Labor Committee 

May 10, 2000 Finance and Labor Committee Meeting 



seven current MAP drivers will be re-trained in outreach 
skills so that each van would have a team of trained 
outreach workers in the vehicle at all times. 

The proposed budget for the CATS Mobile Assistance 
Patrol expansion program, funded by the subject $39,934 
held in reserve, is as follows: 



Training; 


Unit Cost 


Quantity 


Total 


Outreach training (40 hours @ 








$42.50/hour) 


$1,700 


17 


$28,900 


Materials and Supplies 








Cell phones and 1 year of service 


$247 


14 


$3,458 


Pagers and 1 year of service 


103 


14 


1,442 


Fast Passes / tokens 






2,520 


First aid kits / supplies 






2,000 


Personal hygiene products 






1.614 


Equipment Total: 






$11,034 


Project Total: 






$39,934 



Comment: 



1. Acceptance of the 1999 ESGP grant of $891,000 was 
approved by the Board of Supervisors on February 17. 
1999 (File 99-0078). At that time, the Board of 
Supervisors placed $120,350 on reserve as the Emergency 
Shelter Grants Pool. According to Mr. Pon, the proposed 
release of $39,934 in reserved funds would constitute a 
release of all remaining 1999 Emergency Shelter Grants 
Pool funds held in reserve. 



Recommendation: 



2. According to Mr. Pon, outreach training will be 

conducted by The Institute for Community Health 
Outreach, a non-profit organization. 

Approve the release of $39,934 in reserved funds. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

38 



Memo to Finance and Labor Committee 

May 10, 2000 Finance and Labor Committee Meeting 

Item 9 - File 00-0718 

1. This is a hearing to consider (a) the progress in implementing proposed 
staffing increases at the San Francisco General Hospital (SFGH) Pharmacy, which 
were approved by the Board of Supervisors in the FY 1999-2000 budget review; (b) 
expenditures on registry staff during the current fiscal year; (c) implementation of 
the policy to eliminate co-payments for patients with income at or below 200 percent 
of the Federal poverty level; (d) current wait times at the Pharmacy; (e) proposed 
plans to privatize Pharmacy functions, including the cost and benefits of the 
proposal; (f) whether the Department of Public Health (DPH) can issue a Request 
for Proposal (RFP) for Pharmacy functions without Board of Supervisors approval 
and prior to adoption of the FY 2000-2001 budget; (g) how many drugs would be 
available to patients through private pharmacies if the plan to privatize pharmacy 
functions is approved by the Board of Supervisors and the Mayor; and (h) other 
matters related to the current operation of the Pharmacy and the proposed plan to 
privatize its functions. 

2. The attached memorandum, provided by Mitchell H. Katz, M.D., Director of 
Health, contains an explanation of (a) the progress in filling Pharmacy staff 
vacancies, (b) expenditures on registry staff in FY 1999-2000, (c) implementation of 
the policy to eliminate co-payments for drugs for patients with income at or below 
200 percent of the Federal poverty level, (d) current Pharmacy wait times, (e) 
proposed plans to close the SFGH Outpatient Pharmacy, including the costs and 
benefits of the proposal, (f) drugs which would be available to patients through 
community pharmacies, and (g) the current status of issuing an RFP for 
management of pharmacy benefits. According to Dr. Katz, DPH has proposed 
changes to the SFGH Outpatient Pharmacy only and has not proposed changes to 
the Inpatient Pharmacy. 

3. The Pharmacy Department currently has 3.5 vacant Pharmacy Technician 
positions out of 28 FTE 2409 Pharmacy Technician positions. Of the four new 
Pharmacy Technician positions approved in the FY 1999-2000 budget, three 
positions have been filled and one continues to be vacant. Additionally, two 
Pharmacy Technician positions are currently vacant due to retirement, and 0.5 FTE 
Pharmacy Technician position is vacant due to the incumbent's reduction in hours 
to half-time. 

The Pharmacy Department currently has 4 vacant Pharmacist positions out 
of 25 FTE 2450 Pharmacist positions. Of the two new Pharmacist positions 
approved in the FY 1999-2000 budget, one position has been filled. Additionally, 
two Pharmacist positions in the Outpatient Pharmacy and one Pharmacist position 
in the Inpatient Pharmacy are vacant. Dr. Katz states that DPH has been unable 
to recruit for the vacant positions due to a national shortage of pharmacists. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

39 



Memo in Finance and Labor Committee 

May 10, 2000 Finance and Labor Committee Meeting 

DPH has filled a new Interpreter position, and the Interpreter will begin 
work in the Pharmacy Department on May 10, 2000. 

4. According to Dr. Katz, SFGH has spent $709,998 for pharmacy registry 
services, including Outpatient and Inpatient Pharmacies and the Pharmacy 
storeroom, through March 31, 2000. Registry expenditures for the Outpatient 
Pharmacy are $504,416, or 71 percent, of the total expenditures of $709,998. Total 
Pharmacy registry expenditures of $709,998 are $370,998, or 109 percent, more 
than the amount included in the FY 1999-2000 DPH budget for pharmacy registry' 
of $339,000. 

5. In August of 1999 the Outpatient Pharmacy implemented a policy to 
eliminate the $2.00 per prescription co-payment for patients with income between 
101 percent and 200 percent of the Federal poverty level. All patients with income 
at or below 200 percent of the Federal poverty level are now exempt from the co- 
payment. 

6. The Outpatient Pharmacy has not achieved its targeted goal of an average 
two-hour wait time. The current average wait time in the Outpatient Pharmacy is 
three hours. According to DPH, the average daily volume of prescriptions has 
increased from 1,150 prescriptions prior to August of 1999 to 1,280 prescriptions 
since August of 1999, an 11.3 percent increase. 

7. Dr. Katz advises that the proposed FY 2000-2001 DPH budget includes a 
proposal to transfer Outpatient Pharmacy services from SFGH to community 
pharmacies throughout the City. According to Dr. Katz, the proposed plan is to 
contract with a pharmacy benefits management company to manage outpatient 
prescription benefits through community pharmacies for DPH clients. Dr. Katz 
projects that DPH will save approximately $1,700,000 annually by providing 
outpatient prescription drugs through community pharmacies rather than the 
SFGH Outpatient Pharmacy. 

8. According to Dr. Katz. under the proposed pharmacy benefits management 
program, DPH outpatient clients would receive the same medications currently 
available through the SFGH Outpatient Pharmacy, and would have the same 
eligibility criteria for receiving medications and paying co-payments. 

9. Dr. Katz advises that DPH is in the process of developing an RFP to select 
qualified pharmacy benefits management vendors. However. Dr. Katz states that 
implementation of a contract with a vendor would not occur until after the FY" 2000- 
2001 DPH budget is approved. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

40 



Memo to Finance and Labor Committee 

May 10, 2000 Finance and Labor Committee Meeting 




Harvey M. Rose 



Supervisor Yee 
Supervisor Bierman 
President Ammiano 
Clerk of the Board 
Controller 
Steve Kawa 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

41 



MAY-03-2000 12=23 SF DPH CFC 

City and County of San Francisco 



Attachment 
Vap.e 1 of 




Tape 1 of 3 
Department of Public Health 

Mitchell H. Katz, MD 
Director of Health 



MEMORANDUM 



Date: 
To: 



From: 



Subject: 



May 2, 2000 

The Honorable Tom Ammiano 
President, Board of Supervisors 

The Honorable Leland Y. Yec, Ph.D. 
Chair, Finance and Labor Committee 

The Honorable Sue Biennan 
Member, Finance and Labor Committee 



Mitchell H. Katz, M.D. . 

Director of Health fVlA^i^i^A 



Finance Committee Hearing May 10 on SFGH Pharmacy 



This memo is response to your request for information for the May 10, 2000 public hearing on 
the pharmacy operation at San Francisco General Hospital. 

Progress in Implementing Staffing Increases 

The SFGH pharmacy department has filled three of the four new outpatient pharmacy technician 
positions and the newly hired staff completed training and orientation in March. An applicant 
for the fourth vacant position withdrew his application after having accepted the position. In 
addition to this vacancy, two long-tenured pharmacy technicians retired and one staff member 
was granted approval to decrease her hours to half rime. 

The pharmacy department has also filled one of the two new outpatient pharmacist positions and 
the new pharmacist has completed her training and orientation in February. We have not been 
able to recruit the other new position due to the national pharmacist shortage. In addition, two 
additional vacant positions in the outpatient pharmacy and one vacant position in the inpatient 
pharmacy have not been filled. 

Due to the financial crisis in the Department, the new interpreter posihon was frozen for a 
portion of the year. The existing pool of translators provided translation services in all languages 
in the outpatient pharmacy during this period. Since then, the Department has developed a plan 
to bring the deficit into balance and the position was released for hiring. A new translator has 
been successfully recruited and will begin duties in the pharmacy department on May 10. 



-BCirmw }-i-aiOOCCvou» 

(415) 554-2600 



101 Grove Street 



San Francisco, CA 94102 



42 



t\L. uciL:iiuit;ii l 



HPY-03-2000 12=24 5F DPH CFO p apg j_ Q £ -j 

Page 2 



FY 99-00 Registry Expenditures 

San Francisco General Hospital has spent $709,998 on pharmacy registry services through 
March 2000. This amount represents expenditures for registry services for the entire pharmacy 
department that includes outpatient, inpatient, and storeroom pharmacy areas. 

Registry expenditures for the outpatient pharmacy are currently $504,416 of the $709,998. 
Registry staff have been necessary for the outpatient pharmacy due to difficulties in recruiting 
staff. In addition, registry staff have been used to address varying workload requirements and to 
keep the prescription wait times as low as possible for our patients. 

Elimination of Co-Pav for Patients Under 200% FPL 

The policy to eliminate co-pays for patients at or below 200% Federal Poverty Level (FPL) was 
implemented August 1, 1999. At that time, two new eligibility codes were created; one to 
indicate patients at or below the 200% FPL and one to indicate patients above 200% FPL. A 
memo announcing this change in policy was distributed to all providers and Clinic directors in 
August 1999, and re-distributed again in October 1999. 

Current Pharmacy Wait Times 

Through the first quarter of 2000, the average wait time to have a prescription filled has been 

three hours. 

Proposed Plans to Close the Outpatient Pharmacy and Cost Benefit Analysis 
The FY 00-01 budget includes a proposal to transfer outpatient pharmacy services from SFGH 
to community pharmacies throughout the City. The outpatient pharmacy at SFGH is currently 
staffed by contract employees because of the difficulty in hiring civil service staff. No DPH 
employees will lose their job as a result of this proposal since we desperately need these 
pharmacists in the inpatient pharmacy. The proposed plan is to retain a pharmacy benefits 
m a n agement (PBM) company instead of maintaining our pharmacy. 

Pharmacy benefits managers are used by most health insurance plans to manage prescription 
benefits for the employer or insurance plan payer, and the insurance plan members who are the 
beneficiaries of the plan. All pharmacy benefits managers have networks of community 
pharmacies at which the member/beneficiaries may have their prescriptions filled. As a result, 
the use of a pharmacy benefits manager by the Department of Public Health will increase patient 
choice regarding the location where prescription services may be received. This, in turn, will 
improve patient convenience, spread prescription services throughout several community 
pharmacies instead of concentrating them all at one site (SFGH), and decrease the time a patient 
waits to have a prescription filled. In addition, several community pharmacies provide 24-hour 
prescription services and home delivery of medications, services that are not available at the 
SFGH pharmacy. 

The services provided at the SFGH Outpatient Pharmacy will not be discontinued until a contract 
with a pharmacy benefits manager contract is in place, and 2 smooth transition from the current 
to the proposed prescription service method is completed. The current budget proposal does not 
contain any changes to inpatient pharmacy urvices or functions. 



L\BOS\Ph*mi 5- 1-OO.DOC 05/03/00 



A3 



MAY -03-2000 12=24 SF DPH CFO Page ' J ot 3 

' Page 3 



The budget proposal includes projected savings of S 1 .7 million per year by changing the 
prescription benefit service method. This proposal is based on the experiences of other county- 
systems, and our own experience with prescription services provided for our mental health 
patients. As for other outpatient pharmacy changes implemented earlier, wc will be monitoring 
the effect of this change on our patients and to our system. Cost-effectiveness will be part of this 
monitoring plan. 

D rugs to be Available to Patients Through Community Pharmacies 

Community pharmacies that will be part of the pharmacy benefits manager (PBM) network will 
use same Drug Formulary that is currently used by the SFGH Pharmacy. As a result, patients 
will receive the same medications at the community pharmacies as they currendy receive in the 
outpatient pharmacy at SFGH. They will also pay the same copayment that they current pay at 
the SFGH pharmacy. Finally, the same eligibility criteria will be in place under a pharmacy 
benefits manager systems. 

As new drug products become available, the SFGH Pharmacy and Therapeutics Committee will 
continue to modify the drug formulary to be used by the pharmacy benefits manager as 
appropriate. There are approximately 1 100 different drugs on the SFGH Drug Formulary, and 
approximately 4000 different 'line items' (i.e. different strengths, sizes and drug dosage forms.) 
These 1 100 entities and 4000 line items will continue to be available to CHK patients through 
community pharmacies that are part of the community pharmacy network. 

RFP for Pharmacy Benefits Management 

The Department of Public Health has no plans to approve and implement a contract for an 
outpatient pharmacy benefits manager until the FY 00-01 budget is approved. However, the 
Department is currendy in the process of identifying qualifying pharmacy benefit managers and 
developing a request for proposal in order to evaluate qualified vendors. After the DPH budget 
is approved by the Mayor and the Board of Supervisors, the Department wdl proceed with 
processing a contract for a pharmacy benefits manager. It is expected that changes in the SFGH 
outpatient pharmacy will not occur until the fall of 2000. 

Thank you for your consideration of this request. If you have any questions, please call me or 
Monique Zmuda, Chief Financial Officer, at 554-2610. I will be available to answer any 
questions that Committee members may ask during the hearing on May 10. 

Attachment 

cc: Budget Analyst 
Sharon Kotabe 



L.\BOS\Pharm_5-l-00 DOC 05/03AX 

T0T<=4_ P. 04 

44 




[All Committees] 

City and County ofjSan Francisco M^nTiSI"* D ° Cument Secti °n 

MeetingJMinutes 
JFinance and Labor Committee 

Members: Supervisors Leland Yee, Sue Bierman, Tom Ammiano 



Clerk: Mary Red 



' co Wednesday^May 17, 2000 10:00 AM City Hall, Room 263 

Regular Meeting 

Members Present: Leland Y. Yee, Sue Bierman, Tom Ammiano. 



Meeting Convened 

The meeting convened at 10:14 a.m. 

000778 [County Jail No. 3 Replacement Project] 

Ordinance authorizing the Department of Public Works to enter into a design-build contract with Morris Diesel 
International Inc. for the County Jail No. 3 Replacement Project. (Public Works Department) 

(Fiscal impact; Companion measure to File 000783.) 
4/26/00, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Supervisor Yee; Michael Hennessey, Sheriff; 
Supervisor Ammiano; Monique Moyer; Mayor's Office of Public Finance; Ed Harrington, Controller; 
Supervisor Bierman. 
RECOMMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



DOCUMENTS DEPT. 

MAY 2 2 2000 

SAN FRANCISCO 
PUBLIC LIBRARY 



City and County of San Francisco I Printed at 5:09 PM on S/IS/M 



Finance and Labor Committee 



Meeting Minute', 



May 1 7, 2000 



000783 |Issuance of not to exceed $170,310,000 Certificates of Participation for San Bruno Jail Project] 

Resolution approving the execution and delivery of certificates of participation to finance the acquisition, 
construction and installation of a new maximum security jail facility to replace the existing San Bruno Jail No. 
3; approving the form of the property lease between the City and County of San Francisco (the "City") and a 
trustee relating to certain City-owned properties located in the City and San Mateo County (as further 
described in this Resolution); approving the form of project lease between the City and a trustee (including 
certain indemnities contained therein); approving the form of the trust agreement between the City and a 
trustee (including certain indemnities contained therein); authorizing the selection of a trustee; approving the 
form of the purchase contract between the City and an underwriter for the sale of certificates of participation; 
approving the official statement in preliminary and final form; approving the form of a continuing disclosure 
certificate; authorizing an interest rate swap; approving the validation of the execution and delivery of the 
certificates of participation; authorizing reimbursement of certain expenditures; authorizing the payment of 
costs of issuance; adopting findings under the California Environmental Quality Act and findings pursuant to 
the Planning Code Section 101.1; and ratifying previous actions taken in connection therewith. (Mayor) 

(Fiscal impact; Companion measure to File 000778.) 
4/26/00, RECEIVED AND ASSIGNED to Finance and Labor Committee 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst. Supervisor Yee; Michael Hennessey, Sheriff; 
Supen'isor Ammiano; Monique Moyer; Mayor's Office of Public Finance. Ed Harrington, Controller; 
Supervisor Bierman. Amendment of the Whole to clarify and simplify description of interest rate swap set 
forth in Section 9 and reflecting Budget Analyst's recommendations 
AMENDED, AN AMENDMENT OF THE WHOLE BEARING SAME TITLE. 
RECOMMENDED AS AMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



000780 (Court Employee Compensation - New Classifications! 

Ordinance establishing new titles and schedules of compensation, and continuing other benefits, for 

classifications of persons employed by the Superior Court of California, County of San Francisco. (Superior 

Courts) 

4/26/00, RECEIVED AND ASSIGNED to Finance and Labor Committee 

Heard in Committee Speakers Harvey Rose, Budget Analyst; Judge Alfred Chiantelli, Presiding Judge. 

Superior Court; Gordon Park-Li. Assistant Chief Executive Officer, Superior Court; Supervisor Ammiano; 

Andre Spearman, Local 790 Amended to provide retroactive authorization in title 

AMENDED. 

Ordinance establishing new titles and schedules of compensation, and continuing other benefits, for 

classifications of persons employed by the Superior Court of California. County of San Francisco; ratifying 

actions previously taken. (Superior Courts) 

(Supervisor Ammiano dissenting in Committee.) 
RECOMMENDED AS AMENDED by the following vote: 

Ayes: 2 - Yee, Bierman 

Noes: 1 - Ammiano 



City and County of San Francisco 



Printed at 5.09 PM on XltrtO 



Finance and Labor Committee Meeting Minutes May 1 7, 2000 



000781 [MOU - Superior Court and International Federation of Professional and Technical Engineers, Local 21] 

Ordinance implementing the provisions of the Memorandum of Understanding between the Superior Court of 

California, County of San Francisco and the International Federation of Professional and Technical Engineers, 

Local 2 1 . (Superior Courts) 

4/26/00, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Gordon Park-Li, Assistant Chief Executive 

Officer, Superior Court. Amended to provide retroactive authorization in the title. 

AMENDED. 

Ordinance implementing the provisions of the Memorandum of Understanding between the Superior Court of 
California, County of San Francisco and the International Federation of Professional and Technical Engineers, 
Local 21; ratifying actions previously taken. (Superior Courts) 
RECOMMENDED AS AMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



000782 [Court Employee Compensation - Certain Professional Classifications) 

Ordinance implementing the schedules of compensation and other economic benefits for certain classifications 

of persons employed by the Superior Court of California, County of San Francisco. (Superior Courts) 

4/26/00, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Gordon Park-Li, Assistant Chief Executive 

Officer, Superior Court. Amended to provide retroactive authorization in the title. 

AMENDED. 

Ordinance implementing the schedules of compensation and other economic benefits for certain classifications 
of persons employed by the Superior Court of California, County of San Francisco; ratifying actions 
previously taken. (Superior Courts) 
RECOMMENDED AS AMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



000794 [Cash Revolving Accounts - Department of Human Services] 

Ordinance amending Article XV, Part I of the San Francisco Municipal Code (Administrative Code), which 
established cash revolving accounts for the City and County of San Francisco Departments, by amending 
Section 10.157 to increase the total amount in the Department of Human Services Cash Revolving Account; 
and by deleting Sections 10.157-1 and 10.157.2 to consolidate the Aid to Families with Dependent Children 
(AFDC) and General Assistance (GA) accounts into one Department of Human Services Cash Revolving 
Account. 

(Amends Section 10.157; deletes 10.157-1 and 10.157.2.) 
4/27/00, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Julie Brenman, Department of Human 
Services; Ed Harrington, Controller. 
RECOMMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



Cay and County of San Francisco 3 Printed at 5:09 PM on 5/18/00 



Finance and Labor Committee 



Meeting Minutes 



May 1 7, 2000 



000839 |Water Rates for Suburban Resale with Long Term Contract| 

Ordinance approving revised schedule of rates to be charged by the San Francisco Public Utilities Commission 
for water service to its suburban resale customers. (Public Utilities Commission) 

(Certificate of Determination of Exemption/Exclusion from Environmental Review dated May 1, 2000.) 
5/3/00. RECEIVED AND ASSIGNED to Finance and Labor Committee With direction to report back to Board May 2<), 2000 
Heard in Committee. Speakers: Har\ey Rose, Budget Analyst; Bill Laws. Public Utilities Commission 
RECOMMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



000844 (Government Funding - Department of Public Works) 

Ordinance appropriating $12,000,000 in Federal Hazard Mitigation grant funds to the City Hall project, 

transferring funds to the General Fund, and appropriating $12,000,000 for City Seismic Safety projects, for 

fiscal year 1999-2000. (Controller) 

5/3/00, RECEIVED AND ASSIGNED to Finance and Labor Committee 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst, Ste\e Kawa, Mayor's Budget Office; Tony 

Irons. City Architect Amended to place $12,000,000 on reserve; new title 

AMENDED. 

Ordinance appropriating $12,000,000 in Federal Hazard Mitigation grant funds to the City Hall project, 
transferring funds to the General Fund, and appropriating $12,000,000 for City Seismic Safety projects, for 
fiscal year 1999-2000; placing $12,000,000 on reserve. (Controller) 
RECOMMENDED AS AMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



000843 [Government Funding - Department of Public Works| 

Ordinance appropriating $10,791,665. including $7,243,940 from Earthquake Safety Bond project balances 

and interest earnings, to capital improvements, for the City Hall project, for fiscal year 1999-2000. (Controller) 

5/3/00. RECEIVED AND ASSIGNED to Finance and Labor Committee 

Heard in Committee Speakers: Haney Rose. Budget Analyst. Steve Kawa, Mayor's Budget Office. Tony 

Irons. City Architect 

RECOMMENDED. 



000667 (Transfer of California Department of Transportation Freeway Parcels to CCSF| 
Supervisor Leno 

Resolution approving and authorizing the Mayor to enter into an agreement with the State of California for the 
acquisition of right of ways to certain portions of Route 101 (the former Central Freeway), located generally 
between Market Street and Turk Street pursuant to and consistent with the intent of SB798; adopting findings 
that such acquisition is consistent with the City's General Plan and Eight Priority Policies of the Planning 
Code Section 101.1; and placing the property under the Department of Public Works' jurisdiction (Real Estate 
Department) 

4/12/00, RECEIVED AND ASSIGNED to Finance and Labor Committee 

5/3/00, SUBSTITUTED. Substitute resolution submitted by Real Estate Department, bearing new title 
5/3/00, ASSIGNED to Finance and Labor Committee 

Heard in Committee Speakers: Haney Rose. Budget Analyst; Tony DeLucchi. Real Estate Department. 
Supervisor Ammiano; Supervisor Yee. 
RECOMMENDED by the following vote: 
Ayes: 3 - Yee, Bierman. Ammiano 



City and County of San Francisco 



Printed at 5:09 PM on 5-tlthJ 



Finance and Labor Committee 



Meeting Minutes 



May 1 7, 2000 



000784 [Authorizing exercise of option to lease additional space at 1650 Mission Street for the Department of 
Human Services/Department of Building Inspection] 

Resolution authorizing an amendment to lease real property at 1650 Mission Street for the Department of 
Human Services and the Department of Building Inspection. (Real Estate Department) 
4/26/00, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Tony DeLucchi, Real Estate Department; 
Supervisor Yee; Julie Brenman, Department of Human Services; Maggie Donahue; Amy Lee, Department of 
Building Inspection. Amended on page I, line 8 to change name of lessor to G & I Mission, L. L. C. 
AMENDED. 

RECOMMENDED AS AMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



000730 [Reserved Funds, Department of Human Services] 

Hearing to consider release of reserved funds, Department of Human Services (Fiscal Year 1999-2000 
Budget), in the amount of $607,000 to fund the Mission Neighborhood Resource Center project, which will 
serve homeless people and people at risk for homelessness in the North Mission community. (Human Services 
Department) 

4/19/00, RECEIVED AND ASSIGNED to Finance and Labor Committee. Department requests this matter be calendared at the May 17, 
2000 meeting. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Kate Durham, Department of Human Services; 
Supervisor Ammiano; Sylvie LeMer, T. Cao Restaurant; Fernando Gomez; Peter Glikshtern, Mission 
Merchants' Association; Terry Giovannini, Mission Health Center; Betty Traynor, Mission Neighborhood 
Association; Miguel Carvara, Coalition on Homelessness; Sergio Canjura, Central City Hospitality House; 
Dori Joffroy; Tracey Chew, Notre Dame Senior Plaza; David Delgado, Mission Agenda; David; Marrill 
Buice, S. F. Community Clinic Consortium; Richard Marquez, Mission Agenda; Supervisor Yee; Ed 
Harrington, Controller; Michelle Byrd, Department of Human Services. Amended to release $154,349. 
APPROVED AND FILED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



000785 |Option to acquire property located at 525 Golden Gate Avenue adjacent to the Civic Center core area, 
to provide for the expansion of governmental functions] 

Resolution approving and authorizing the exercise of an option to acquire real property located at 525 Golden 
Gate Avenue from the State of California for the nominal price of Two Dollars ($2); adopting findings that the 
conveyance is consistent with the City's General Plan and Eight Priority Policies of Planning Code Section 
101.1; and ratifying prior acts. (Real Estate Department) 
4/26/00, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Tony DeLucchi, Real Estate Department. 
RECOMMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



City and County of San Francisco 



Printed at f. 09 P\f on $18.00 



Finance and Labor Committee 



Meeting Minutes 



May 1 7, 2000 



000786 (2000 Affordable Housing Bond Sale] 

Resolution authorizing and directing the sale of not to exceed $20,000,000 City and County of San Francisco 
General Obligation Bonds (Affordable Housing) Series 2000D; prescribing the form and terms of said Bonds; 
authorizing the execution, authentication and registration of said Bonds; providing for the appointment of 
depositories and other agents for said Bonds; providing for the establishment of accounts related thereto; 
approving the forms of official notice of sale of Bonds and notice of intention to sell Bonds; directing the 
publication of the notice of intention to sell Bonds; approving the form and execution of the official statement 
relating thereto; approving the form of the continuing disclosure certificate; approving modifications to 
documents; ratifying certain actions previously taken; and granting general authority to City officials to take 
necessary actions in connection with the authorization, issuance, sale and delivery of said Bonds. (Mayor) 

(Fiscal impact.) 

4/26/00, RECEIVED AND ASSIGNED to Finance and Labor Committee 

Heard in Committee Speakers: Harvey Rose, Budget Analyst, Sarah Hollenbeck, Mayor's Office of Public 
Finance; Daryl Higashi, Acting Director, Mayor's Office of Housing. 
RECOMMENDED by the following vote: 
Ayes; 3 - Yee, Bierman, Ammiano 



000788 (Acquisition of a vacant lot containing 10,103.74 sq. ft. located mid-way between Mission and Valencia 
Streets for open space purposes! 

Resolution approving and authorizing the acquisition of real property in the North Mission District generally 
described as 45 Hoff Street, (Lot 19 in Assessor's Block 3569) for open space purposes and adopting findings 
pursuant to Planning Code Section 101.1 (Real Estate Department) 

(Fiscal impact.) 

4/26/00, RECEIVED AND ASSIGNED to Finance and Labor Committee 

Heard in Committee Speakers: Haney Rose. Budget Analyst: Tony DeLucchi. Real Estate Department; 
Ethel Newland. St. John 's School. 
RECOMMENDED by the following vote: 
Ayes: 3 - Yee, Bierman. Ammiano 



000799 |Prop J, Contracting Out Security Services| 

Resolution concurring with the Controller's certification that security services can be practically performed at 
the Department of Human Services by private contractor for a lower cost than similar work services performed 
by City and County employees. (Human Services Department) 
5/1/00, RECEIVED AND ASSIGNED to Finance and Labor Committee 

Heard in Committee. Speakers: Haney Rose. Budget Analyst; Julie Brenman. Human Sen-ices Department; 

Supen-isor Yee. 

RECOMMENDED by the following vote: 

Ayes: 3 - Yee, Bierman, Ammiano 



000847 (Authorizing renewal of lease for 1101 Capp Street occupied by Senior Escort Services| 

Resolution authorizing the lease of real property at 1101 Capp Street for the San Francisco Police Department. 
(Real Estate Department) 

5/3/00, RECEIVED AND ASSIGNED to Finance and Labor Committee 

Heard in Committee. Speakers: Haney Rose, Budget Analyst; Tony DeLucchi. Real Estate Department 
RECOMMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



City and County of San Francisco 



Printed at f :09 PM on HUM 



Finance and Labor Committee 



Meeting Minutes 



May 17, 2000 



000849 [Authorizing renewal of lease for the Portola Branch Library] 

Resolution authorizing the lease of real property at 2450 San Bruno Avenue for the San Francisco Portola 
Branch Public Library. (Real Estate Department) 
5/3/00, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Tony DeLucchi, Real Estate Department. 
RECOMMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



000850 [New lease of property at 30 Van Ness Avenue for Ethics Commission currently housed at Fox Plaza, 
1390 Market Street] 

Resolution authorizing a lease of 2998 square feet at 30 Van Ness for the Ethics Commission. (Real Estate 
Department) 

5/3/00, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Tony DeLucchi, Real Estate Department. 
RECOMMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



000874 [San Francisco General Department of Psychiatry] 

Supervisors Ammiano, Leno, Newsom, Yee, Katz, Bierman 

Resolution urging the Director of Public Health to refrain from reducing psychiatric beds or services, or to 
involuntarily reassign psychiatric staff, without the Board of Supervisor's review and approval of the City's FY 
2000-2001 Budget, and urging the Director of Public Health and the Chief of Psychiatry to recommend three 
mental health experts each to provide policy recommendations to the Board. 
5/8/00, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Supervisor Ammiano; Supervisor Yee; Dr. Mitchell Katz, Director of Health; 
Ed Harrington, Controller; Steve Kawa, Mayor's Budget Office; Fred Hobson, Dr. Robert Okan, Chief of 
Psychiatry, S.FG.H.; Dr. Mark Learry, Deputy Chief of Psychiatry, S.F.G.H. 
TABLED by the following vote: 

Ayes: 3 - Yee, Bierman, Ammiano 



000882 [Proposed Reduction in Acute Psychiatric Beds] 
Supervisor Yee 

Hearing to consider the proposal by the Department of Public Health to reduce the number of acute psychiatric 
beds at San Francisco General Hospital. 

5/8/00, RECEIVED AND ASSIGNED to Finance and Labor Committee. Schedule for May 17, 2000 meeting. 
Heard in Committee. Speakers: Supervisor Ammiano; Supen'isor Yee; Dr. Mitchell Katz. Director of Health; 
Ed Harrington, Controller; Steve Kawa, Mayor's Budget Office; Fred Hobson. Dr. Robert Okan. Chief of 
Psychiatry, S.FG.H.; Dr. Mark Learry, Deputy Chief of Psychiatry. S.F.G.H. 
CONTINUED TO CALL OF THE CHAIR by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



City and County of San Francisco 



Printed at 5:09 PM on S. 1&00 



Finance and Labor Committee 



Meeting Minutes 



May I 7, 2000 



000040 (Financial Condition of the San Francisco Unified School District] 
Supervisor Yee 

Hearing to consider the financial condition of the San Francisco Unified School District, including a district 
staff overview of estimated local, state and federal revenues and anticipated expenditures 

1/4/00, RECEIVED AND ASSIGNED to Joint School Board/Board of Supervisors Committee Sponsor requests this matter be scheduled 
for the January 26, 2000 meeting (January 26, 2000 meeting cancelled on January 21, 2000.) 
2/14/00, TRANSFERRED to Finance and 1 .abor Committee 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst. Supervisor Yee: Supervisor Ammiano, Ed 
Harrington. Controller; Mary Hernandez. President. Board of Education; Supervisor Bierman, Earnestme 
Weiss. 

CONTINUED TO CALL OF THE CHAIR by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



000411 |< it \ workers] 
Supervisor Yee 

Hearing to consider the treatment and cost of custodial staff and other related service workers, in City Hall 
3/6/00. RECEIVED AND ASSIGNED to Finance and Ubor Committee 

Heard in Committee. Speakers: Ryan Brooks. Director, Administrative Services. Supervisor Yee; Supervisor 
Ammiano. 

CONTINUED TO CALL OF THE CHAIR by the following vote: 
Ayes: 3 - Yee. Bierman, Ammiano 



LITIGATION 



Conference with City Attorney 

Convene in Closed Session) 

Motion that the Finance and Labor Committee of the Board of Supervisors convene in closed session with the 
City Attorney, under the provisions of Government Code Section 54956.9 (a) and Administrative Code Section 
67.8 (i).for the purpose of conferring with, or receiving advice from, the City Attorney regarding proposed 
settlements in the lawsuits or claims listed below 

Unanimous vote to convene to closed session. 



After a closed session, if one occurs, the Committee shall adopt a motion either to disclose or not to disclose. 



City and County of San Francisco 



Printed at 5:09 PM on V11V0 






Finance and Labor Committee Meeting Minutes May I 7, 2000 



Closed session pursuant to California Government Code section 54956. 9 and San Francisco Administrative 

Code section 67.10(d). 

CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION (DISCUSSION ITEM) 

Number of potential cases: 
I, as defendant 

(Circumstances supporting conclusion that there is a significant exposure to litigation against the local agency 
pursuant to Government Code section 54956.9(b)(3): four lawsuits have been filed by subcontractors against 
the general contractor on the City Hall project, who may seek indemnification from the City.) 



Deputy City Attorney Tom Owen reported that the Finance and Labor Committee has met in closed session 
with the City Attorney, under the provisions of Government Code Section 54956.9 (a) and Administrative Code 
Section 67.8 (3), for the purpose of conferring with, or receiving advice from, the City A ttorney regarding 
settlements in the lawsuits or claims listed above. 



[Elect Not to Disclose] 

Motion that the Committee finds that it is in the best interest of the public that the Committee elect at this time 
not to disclose its closed session deliberations concerning the anticipated litigation listed above. 

Unanimous vote not to disclose deliberatons. 
ADJOURNMENT 

The meeting adjourned at 3:05 p.m. 



City and County of San Francisco 9 Printed at 5:09 PM on S/IS/00 



budget Analyst Report! 

Susan Horn Section 

Main Ubrary-Govt. uo 



3 



CITY AND COUNTY 




OF SAN FRANCISCO 
/ 



BOARD OF SUPERVISORS 



BUDGET ANALYST 



1390 Market Street, Suite 1025, San Francisco, CA 94102 (415) 554-7642 
FAX (415) 252-0461 _ 

DOCUMENTS DEPT. 






Mav 11, 2000 



TO: 
FROM: 



Finance and Labor Committee 
Budget Analyst 



MAY 1 7 2000 

SAN FRANCISCO 
PUBLIC LIBRARY 



SUBJECT: May 17, 2000 Finance and Labor Committee Meeting 



Items 1 and 2 - Files 00-0788 and 00-0783 



Department: 



Items: 



Department of Public Works (DPW) 
Mayor's Office of Public Finance 

File 00-0778 : Ordinance authorizing the Department of 
Public Works to enter into a design-build contract with 
Morse Diesel International Inc. for the County Jail No. 3 
Replacement Project. (Public Works Department) . 

File 00-0783 : Resolution approving the execution and 
delivery of Certificates of Participation in an amount not 
to exceed $170,310,000 to finance the acquisition, 
construction and installation of a new maximum security 
jail facility to replace the existing San Bruno Jail No. 3; 
approving the form of the property lease between the City 
and County of San Francisco (the "City") and a trustee 
relating to certain City-owned properties located in the 
City and San Mateo County (as further described in this 
Resolution); approving the form of project lease between 
the City and a trustee (including certain indemnities 
contained therein); approving the form of the trust 
agreement between the City and a trustee (including 
certain indemnities contained therein); authorizing the 
selection of a trustee; approving the form of the purchase 



Memo to the Finance and Labor Committee 

May 17, 2000 Finance and Labor Committee Meeting 



contract between the City and an underwriter for the sale 
of Certificates of Participation; approving the official 
statement in preliminary and final form; approving the 
form of a continuing disclosure certificate; authorizing an 
interest rate swap; approving the validation of the 
execution and delivery of the Certificates of Participation; 
authorizing reimbursement of certain expenditures; 
authorizing the payment of costs of issuance (including 
underwriter's discount and bond insurance); adopting 
findings under the California Environmental Quality Act 
and findings pursuant to the Planning Code Section 
101.1; and ratifying previous actions taken in connection 
therewith. 



Description: Background 



In May of 1991, an action was filed against the I 
(Jones v. City and County of San Francisco et al.) 
challenging that the conditions at County Jail No. 3 in 
San Bruno were in violation of constitutional 
requirements. The United States District Court concluded 
in 1997 that the Jail violated the United States 

unit ma. The District Court specifically found that 
the existing Jail posed health, fire safety and seismic 
risks After several years of litigation, a settlement 

ement was reached that resulted in dismissal of the 
plaintiff.- action, so long as certain conditions are met by 
the City. These conditions include (a) the construction of 
a new jail facility; (b) the continuance of certain 
improvements made to County Jail No. 3 between July. 
I'. 1 '. '7 and the present; and (c) improvements in the 
conditions at County Jail No. 3 on an interim basis, 
pending completion of a proposed new jail facility. The 
settlement agreement was approved by the Board of 
Supervisors in April of 1999. The City Attorney advised 
the Board of Supervisors at that time that, if the City 
decided not to proceed with the construction of a new jail, 
the proposed settlement agreement would be set aside 
and the lawsuit would proceed. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to the Finance and Labor Committee 

May 17, 2000 Finance and Labor Committee Meeting 



Item 1 - File 00-0778: Ordinance Approving Design- 
Build Construction Contract 

1. In March of 2000, the Board of Supervisors 
approved an Ordinance authorizing the Sheriffs 
Department, the Department of Public Works, the City 
Architect, the City Attorney's Office and the Mayor's 
Office of Public Finance to negotiate and enter into a 
design-build/finance contract with Prison Realty Trust for 
the County Jail No. 3 Replacement Project. (File 00-0088. 
Ordinance 40-00). Ordinance 40-00 outlined the terms of 
a design-build/finance contract and authorized the 
Director of Public Works and City Attorney to negotiate 
the contract in accordance with such terms. Among other 
conditions, the final ordinance as recommended by the 
Finance and Labor Committee and approved by the Board 
of Supervisors stipulated that the total contract amount of 
the design-build/finance contract would not exceed 
$115,000,000. In addition to the $115,000,000 contract 
cost for construction of the County Jail No. 3 Replacement 
Project, City costs of $17,200,581 have been identified, 
resulting in total project costs of $132,200,581. 

2. According to the proposed resolution in File 00- 
0778, since approval of the above referenced ordinance, 
Prison Realty Trust has "experienced certain business 
difficulties and was not able to proceed with negotiations 
for a design-build contract"'. (Since the Mayor's Office of 
Public Finance had determined that it would be 
advantageous for the City to issue Certificates of 
Participation to fund the project, no financing assistance 
would be required of the contractor. Hence, the proposed 
contract is a design-build contract only and not a design- 
build/finance contract). 

3. The proposed design-build contract is now between 
the City and the General Contractor that had teamed 
with Prison Realty Trust for the originally conceived 
design-build/finance contract. Morse Diesel International. 
Inc. (MDI). MDI has separate agreements with the 
following entities to provide service to MDI under the 
proposed contract: 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

3 



Memo to the Finance and Labor Committee 

May 17, 2000 Finance and Labor Committee Meeting 



Acumen Building Enterprise: Consultant to MDI, 

providing a project engineer 

Arcost CPM Group: Consultant to MDI, providing a 

project scheduler 

Kaplan McLaughlin Diaz: Lead Architect 

( irr^on/Overstreet: Associate Architect, consultant to 

KMS 

The Crosby Group: Lead Structural, consultant 

KM I) 

SOH & Associates: Structural, consultant to KMD 

MCT Engineering: MEP & Secuntv, consultant 

KMD 

JP Singh: Seismic Specialist, consultant to KMD 

Telamon Engineering, Civil, consultant to KMD 

The Zahn Group, Technical Specifications, consultant 

to KMD 






to 



A summary budget for the proposed design-build 
construction contract is shown below: 



Construction Subcontr. i 
Contingency 
Permits and Taxes 
Bonds and Insurance 

ign 
MDI General Conditions/Fee 

Total 



$ 83,488,652 

8,025,000 

"..000 

3,011.348 

7,200,000 

12.400.000 

-115.000,000 



Attachment 1 to this report provides a detailed 
breakdown of the summary budget shown above. 

Attachment 2 to this report is a memorandum from the 
Human Rights Commission describing the MBEAVBE 
status and level of participation for all contractors listed 
above for the design phase of the project. According to Mr. 
James Cheung, Project Manager for DPW. the MBE 
participation goal for the design phase of the project was 
19 percent and the actual HRC certified participation is 
38.9 percent. The VVBE participation goal for the design 



As specified in Ordinance 44-00. construction subcontractors will be selected based on a weighted 
scale of cost, achievement of Human Rights Commission goals and workforce availability. 

BOARD OF SUPERVISORS 

BUDGET ANALYST 

4 



Memo to the Finance and Labor Committee 

May 17, 2000 Finance and Labor Committee Meeting 



phase of the project was four percent and the actual HRC 
certified participation is 7.6 percent. 

4. The proposed ordinance in File 00-0778 certifies 
that the proposed contract with MDI complies with the 
terms and conditions set forth in Ordinance 40-00. These 
terms and conditions are as follows: 

a. the total project cost of the contract with MDI for 
the design-build portion of the project will not 
exceed $115,000,000. 

b. All construction sub-contracts costing $500,000 or 
more, including at least 80% of all labor, 
equipment, material, and supply subcontract costs, 
will be competitively bid to at least three qualified 
bidders for each subcontract bid package. 
Subcontracts would be awarded by MDI with the 
review and approval of the City (represented by the 
DPW Project Manager) based on a weighted scale 
of cost, achievement of Human Rights Commission 
goals and workforce availability. 

c. MDI would be responsible for providing all design 
and construction services necessary for receipt of 
an occupancy permit for a facility meeting or 
exceeding all design and specification 
requirements, all industry standards and all 
applicable codes and regulations. 

The Project would be required to meet the program 
needs identified by the Sheriff and agreed upon 
between the two parties, including but not limited 
to the following: 

• 384 cells each accommodating two prisoners, 

• kitchen and eating facilities, 

• medical and administration facilities and 
support services. 

• MDI would provide all design consultants 
necessary for the design and construction and 
administration services through permitted 
occupancy and final project closeout. The not-to- 
exceed cost of $115,000,000 for the design-build 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to the Finance and Labor Committee 

May 17, 2000 Finance and Labor Committee Meeting 



portion of the project includes estimated 
amounts to be paid by MDI to its general 
contractor and design team, which amount would 
be adjusted after actual bids have been received 
on the subcontractor bid packages. The amount 
to be paid in MDI for supervision, overhead and 
profit, and to its architect for all design services 
i- described herein, collectively, would be no 
mori' than 25% of the actual cost of construction 
of the Project. 

d MDI would produce a bid package schedule which 
minimi/'"- the construction duration. It is 
estimated that construction would begin upon the 
issuance of a notice to proceed by the DPW and the 
facility would become operational in approximately 
38 months. 

e MDI could re-design and re-bid subcontractor bid 
packages if the bids for subcontractor bid packages 
exceed the budgeted amount. The cost of re-design 
would be paid 50% by MDI and 50% from the re- 
designed bid package price. 

f. MDI would assumi asibility for all change 

orders which do not arise from DPW requested 
changes to the Project's program. 

u r . MDI would assume responsibility for on-budget, on- 
schedule delivery of the Project regardless of its 
contractual agreements with parties other than the 
City. The Project would be completed within 38 
months after the City issues the Project's notice to 
proceed. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

6 



Memo to the Finance and Labor Committee 

May 17, 2000 Finance and Labor Committee Meeting 



Item 2 - File 00-0783: Resolution approving the 
execution and delivery of Certificates of 
Participation in an amount not to exceed 
$170,310,000 to finance the County Jail No. 3 
Replacement Project 

1. This proposed resolution would authorize the 
issuance of Certificates of Participation in a par amount 
not to exceed $170,310,000. The use of proceeds from the 
COPs issuance to provide funds for the construction of the 
County Jail No. 3 Replacement Project will be subject to 
future appropriation approval by the Board of 
Supervisors. In addition, the proposed resolution 
authorizes the City to execute an Asset Transfer in order 
to reduce the amount of money that must be borrowed in 
order to fund the project. Lastly, the proposed resolution 
authorizes an interest rate swap agreement that would be 
executed by the Mayor's Director of Public Finance in 
order to reduce the total debt service required to repay 
the Certificates of Participation. 

2. The actual proceeds from the sale of Certificates of 
Participation (COPs) required to fund the proposed 
project will depend on municipal tax exempt interest 
rates at the time the COPs are sold. The not to exceed 
amount assumes that current interest rates will increase 
by one percent by September of 2000 when the COPs are 
expected to be sold. According to Ms. Monique Mover, 
Mayor's Director of Public Finance, if the COPs had been 
sold in April of 2000, the average interest rate would be 
5.66 percent and the par amount of the COPs that would 
have to be issued would be approximately $163,200,000. 
However, Ms Mover notes that interest rates have already 
risen since April of 2000. 

3. The COPs par amount not to exceed $170,310,000 
as specified in the proposed resolution assumes interest 
rates will increase by as much as one percent above the 
April levels of 5.66 percent for municipal tax exempt 
COPs. According to Ms. Mover, the actual amount of 
COPs that will be issued will not exceed the amount 
required to provide total construction funding for the 
project in the amount of $132,200,581. A summary table 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to the Finance and Labor Committee 

May 17, 2000 Finance and Labor Committee Meeting 

of project sources and uses, assuming the issuance of 
$170,310,000 is shown below: 

Sources 

Par amount of Certificates: $170,310,000 

Interest Earnings for Construction Fund: 12,684,344 

Total Sources: $182,994,344 

Uses 

Construction fund: $132,200,000 

Capitalized interest fund: 131,954 

Debt service reserve fund: 13.125,248 

Certificate (bond) Insurance: 3.102,643 

Underwriter's Discount: 1293,565 

Cost of Issuance: 1.140.934 

Total I $182,994,344 

Based on the issuance of S170.310.000 in COPs. the 
average debt service (after construction) is assumed to be 
$13,118,105 per year. Total debt service would be 
over the life (including payments from 
amounts available in the capitalized interest and reserve 
fuiv 

1 The proposed resolution would also authorize the City to 
execute an asset transfer in order to reduce the total 
amount of funds to be borrowed. Such an asset transfer 
would pledge the full 145 acres of the San Bruno Jail 
complex and County Jail Number 8/9 (the recently 
constructed jail facility at the Hall of Justice) as collateral 
during the construction of the Jail No. 3 Replacement 
Project. The asset transfer technique was also used to 
finance the City's 800 megahertz radio system project. 

Should the asset transfer prove feasible in the amounts 
anticipated (depending on the appraised valuation of the 
assets to be pledged) the par amount of the COPs to be 
issued can be reduced by approximately S22.000.000 to 
SI 48,265,000. The table below shows the projected 
sources and uses of funds should this amount of COPs be 
issued. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

8 



Memo to the Finance and Labor Committee 

May 17, 2000 Finance and Labor Committee Meeting 



Sources 

Par amount of Certificates: $148,265,000 

Interest Earnings for Construction Fund: 12.684.344 

Total Sources: $160,949,344 

Uses 

Construction fund: $132,200,000 

Capitalized interest fund: 12,316,062 

Debt service reserve fund: 11,426,918 

Certificate (bond) Insurance: 2,681,075 

Underwriter's Discount: 1,184,355 

Costs of Issuances: 1.140.934 

Total Uses: $160,949,344 

Under the scenario where the COPs issuance is reduced 
to $148,265,000, the average annual debt service (after 
construction) would be $9,998,547. Debt service over the 
life of the certificates would be $329,952,058 (including 
payments from amounts available in the capitalized 
interest and reserve funds). The City would be required to 
appropriate lease payments totaling approximately $18.1 
million over the four year period of FY 2001-2002 through 
FY 2004-2005. 

5. Attachment 3 to this report is a memorandum 
provided by Ms Mover describing the final plan of finance 
and the proposed asset transfer. Ms Mover's 
memorandum includes exhibits that detail the City's 
project cost of $17,200,581 (which will also be funded from 
the COPs issuance), the $1,140,934 cost of issuance, a 
debt service schedule based on the sale of $170,310,000 in 
COPs and a comparison of debt alternatives that 
illustrates the benefit of the anticipated asset transfer. 
The last exhibit to Attachment 3 shows that the potential 
reduction m the par amount of the COPs under the 
anticipated execution of an asset transfer is 
approximately $22,000,000 and that the total savings in 
debt service over the life of the COPs is $56,025,250. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

9 



Memo to the Finance and Labor Committee 

May 17, 2000 Finance and Labor Committee Meeting 



6. The proposed resolution would also authorize the 
Mayor's Director of Public Finance to enter into an 
"interest rate swap" if market conditions are favorable to 
the City. The proposal involves the potential execution of 
,i fixed to floating rate swap in order to offset General 
Fund debt service requirements during the 42 month 
period during which capitalized interest must be paid on 
the COPs. According to Ms Moyer, the Mayor's Office of 
Public Finance has worked extensively with the City's 
financial advisor, senior underwriter and bond counsel on 
this matter. 

7. Should market conditions appear favorable for 
execution of the interest rate swap, the City would 
potentially achieve financial benefits, the value of which 
cannot be estimated at this time. An analysis of historical 
interest rate relationships by Ms Moyer indicates that 
since 1989, a fixed to floating interest t 

would have produced benefits averaging approximately 
$1.3 million annually based on a total COPs issuance of 
approximately $148 million. 

This strategy includes risk to the City however. Such 
risks include int. volatility that could result in 

additional expenditures by the City instead of reduced 
debt service expenditures. A second area of risk is 
"counterparty risk" whereby the second party to the City 
in an interest rati ^reement faces bankruptcy or 

extreme financial distress to the point that said 
counterparty is unable to make payments due the City. 

8. Attachment 4 to this report is a second 
memorandum from Ms Moyer that: a) explains interest 
rate swap agreements: b) the potential benefits of an 
intt ■! swap; c) the risks associated with an interest 
rate swap (interest rate volatility and counterparty risk) 
and the proposed approach to mitigate such risks: and. d) 
background information on the interest rate swap market. 
Attachment 1 also includes an exhibit that shows the 
potential benefit of the interest rate swap based on 
historical interest rate relationships since 1989. This 
exhibit illustrates that under the stated assumptions, the 
City's financial benefit from the interest rate swap would 
total approximately $5.1 million over the 42 month period 

BOARD OF SUPERVISORS 

BUDGET ANALYST 

10 



Memo to the Finance and Labor Committee 

May 17, 2000 Finance and Labor Committee Meeting 

during which the interest rate swap agreement would be 
in place. 

Comments 1. The Budget Analyst notes that the proposal to 

authorize an interest rate swap agreement contains 
elements of risk that cannot be entirely eliminated. 
However, the Mayor's Office of Public Finance, with the 
advice of the City's independent Financial Advisor, will 
not enter into such an agreement unless interest rate 
swap market conditions appear favorable to the City. 
Also, the Mayor's Office of Public Finance has proposed 
steps to mitigate risks associated with interest rate 
volatility and counterparty solvency, as described in 
Attachment 4 to this report. Despite these safeguards 
however, there is a chance that the interest rate swap will 
result in increased expenditures for the City during the 
term of the swap agreement, a period of up to 42 months, 
instead of offsetting the City's debt service expenditure as 
intended. 

2. In the opinion of the Budget Analyst, the proposed 
resolution (Item 2, File 00-0783) should contain language 
that provides assurances to the Board of Supervisors that 
the par amount of the COPs issuance will not exceed the 
maximum amount necessary to provide sufficient net 
proceeds to fund the $132,200,581 amount required for 
construction of the Jail No. 3 Replacement Project. As 
previously noted, the amount of the COPs issuance will 
not exceed $170,310,000, depending on prevailing interest 
rates at the time the COPs are issued and the financial 
viability of executing an asset transfer to reduce the par 
amount of the COPs. The Budget Analyst therefore 
recommends specific language to assure that the amount 
of the COPs to be issued will not exceed the minimum 
amount necessary to provide the required project 
construction funds (see Recommendation 1 below). 

3. Because of the risks associated with the potential 
use of an interest rate swap agreement to offset the City's 
debt service payments during the period interest is 
capitalized on the COPs issuance, approval of the 
proposed ordinance and resolution are policy matters for 
the Board of Supervisors. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

11 



Memo to the Finance and Labor Committee 

May 17, 2000 Finance and Labor Committee Meeting 

Recommendations: 1. In accordance with Comment 2 above, insert the 

following language on page four, beginning on line seven 
of Item 2 - File 00-0783 following the words "shall not 
exceed twelve percent (12%)": 

.... further provided, that the amount of Certificates issued 
shall be no greater than required to finance an amount of 
net construction proceeds, which when aggregated with 
amounts reasonably anticipated to be earned on such net 
construction proceeds, shall not significantly exceed 
$132,200,581 as certified by the City's independent 
financial advisor as a pre-condition to the City's del 
of tli>- < 'ertificatea to the Trustee. 

2. Approval of the proposed ordinance and the 
proposed resolution, as amended, is a policy matter for 
the Board of Supervisors. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

12 



San Bruno Counrv Jail #3 - Construction Budget 



Attachment 1 



Description 


Budget 


A. Subcontractors 




Division 1 - General Conditions 


$220,004 


Division 2 - Site work 


8,149,944 


Division 3 - Foundations 


11,486,113 


Division 4 - Masonry 


4,166,071 


Division 5 - Metals 


3,718,677 


Division 6 - Wood & plastic 


1,299,779 


Division 7 - Thermo/Moisture Protection 


1,983,991 


Division 8 - Doors & windows 


8,644,106 


Division 9 - Finishes 


4,239,384 


Division 10 - Specialties 


1,559,363 


Division 1 1 - Equipment 


2,058,552 


Division 12 - Furnishings 





Division 13 - Special Construction 


5,349,968 


Division 14 - Conveying systems 


1,274,517 


Division 15 - Mechanical 


14,S46,990 


Division 16 - Electrical 


13,664,574 


Subcontractor Bonds 


826.619 


Total Subcontract Cost 


S83,488,652 


B. Contingency 




Bid Contingency 


4,012,500 


Developer's Contingency 


4.012,500 


Total Contingency 


58,025,000 


C. Permits/Tax 




Permits 


525,000 


Gross Receipt Tax 


350.000 


Total Permits/Tax Cost 


$875,000 


D. Bonds/ Insurance 




Bond 


1 ,050,000 


Builders Risk Insurance 


222,348 


Professional Liability Insurance 


199,500 


General Liability 


1,039,500 


Pre-Construction Costs 


500.000 


Total Bonds/Insurance Cost (3.26%) 


$3,011,348 


E. Design* 




KMD Design 


7.200.000 


Total Design Cost (7.79%) 


57,200,000 


F. MDI* 




General Conditions/ Fee 


12.400.000 


Total MDI Cost (13.42%) 


$12,400,000 


Total Contract Cost 


SI 15.000.000 



* Total design cost & MDI GC/Fee is 21 21% of actual subcontract costs The developer will not be 
entitled to any design & MDI GCTec (21 21"..) on the developer's contingency work, permits/tax and 
bonds/insurance. Final design costs & MDI GC/Fee will be adjusted when the total subcontract costs jtc 
determined and finalized as per contract documents 



City and County of San Francisco 




Wlllla Lewis Brown, Jr. 
Mayor 



Attachment 2 

Human Rights Commission 

Contract Compliance 

Oisputo Resolution/Fair Mousing 

Mlnorlty/Women/Local BuilnMi Enterprise 

Lesbian Gay BIm.ua! TnnsflenrJer I HIV Discrimination 

Virginia M. Harmon 
Interim Director 



MEMORANDUM 



TO: James Cbeng, DPW 

FROM: Veronica Ng, HRC W 

Date: May 11, 2000 

RE: San Bruno County Jail Project 

As per your request, the following is the team participation (design 
phase) for the above referenced project: 

KMD(Prime) 34% 

Gerson Overstreet(MBE) 13.86% 

The Crosby Group 9.9% 

SOHA Engineers 5.28% 

JP Singh 1.32% 

MCT Engineers (MBE) 25.08% 

Telamon Engineering (W'BE) 6.27% 

BUI Caruso 2.97% 

The Zahn Group (\VBE) 1.32% 

If you need any further information, please do not hesitate to contact 
me at 558-4014 




25 Van Nass Avenue 

Suits 800 

San Francisco 

California 94103-6033 



TEL (41 5) 252-2500 

FAX (415)451-5764 

TDD (4151 252-2550 

HflpJrwww.sfhumanngnt3.org 



Office of the Mayor 
san francisco 




Attachment 3 
Page 1 of 7 

Willie Lewis Brown, Jr. 



Date: May 12, 2000 

To: Ken Bruce, Office of the Budget Analyst 

From: Monique Moyer, Mayor's Office of Public Finance 

RE: County Jail No. 3 Replacement Project 

SI 70,3 10,000 Certificates of Participation 
Final Plan of Finance 



The proposed Resolution pending before the Board of Supervisors requests authorization for up 
to SI 70,3 10,000 of certificates of participation to finance the San Bruno Jail No. 3 Replacement 
Project. This is a maximum, not to exceed amount that anticipates a 1% increase in municipal 
tax exempt rates. The sources and uses of the certificate proceeds are as follows: 



Sources 

Par amount of Certificates: 
Interest Earnings for Construction Fund: 
Total Sources: 

Uses 

Construction fund: 
Capitalized interest fund: 
Debt service reserve fund: 
Certificate (bond) Insurance: 
Underwriter's Discount: 
Costs of Issuances: 
Total Uses: 



SI 70,3 10,000 

12.684.344 

SI 82,994,344 



5132,200,000 

32,131,954 

13,125,248 

3,102,643 

1.293,565 

1.140.934 

SI 82,994,344 



The certificates are scheduled to be issued in September 2000. The construction period is 36 
months and the capitalized interest period is 42 months. The term of the certificates is for 33 
years (30 years plus 3 years of construction). Summaries of construction expenditures (Exhibit 
1) and the costs of issuances (Exhibit 2) are attached hereto. The average interest rate is inflated 
to be 6.67% (approximately 1% above current interest rates). The average debt service (after 
construction) is assumed to be SI 3,1 18,105 per year and S432, 897,483 over the life (including 
payments from amounts available in the capitalized interest and reserve funds). A debt service 
schedule is attached as Exhibit 3. Lifetime debt service net of capitalized interest and reserve 
fund monies is 5356,128,667. 

If the certificates were issued in April 2000. they would be issued in the amount of 
5163,200,000. The average interest rate would be 5.66% and the average annual debt service 
(after construction) would be 51 1,233,713. Debt service over the life of the certificates would be 



1 DR. CARLTON B. GOOOLETT PLACE. ROOM 200 SAN FRANCISCO. CALIFORNIA 94102 

(415) 554-6141 
RECYCLED PAPER 
15 



Attachment 3 
Page 2 of 7 

$370,7 12,523 (including payments from amounts available in the capitalized interest and reserve 
funds). 

Asset Transfer 

The proposed Resolution authorizes the City to execute an Asset Transfer in order to reduce the 
amount of money required to be borrowed. As you know, certificates of participation are not 
debt as defined by the State Constitution. Rather, they constitute a lease between the City's 
trustee, Wells Fargo Bank and the City. As such, the City cannot make a lease payment until the 
City has beneficial use of the Jail, which is determined by a certificate of occupancy (aka 
substantial completion). Therefore, the City has to include capitalized interest (interest to pay 
certificate-holders during construction) as part of its borrowing costs. 

However, under an asset transfer structure, the Cit) pledges additional current assets to the 
Trustee as collateral. Since the City has full benetlt of the assets, the City can make lease 
payments on such assets immediately This reduces and/or eliminates the amount of capitalized 
interest that must be borrowed. 

Propositi issets <& Collateral Structure • The Mayor's Office of Public Finance (MOPF) has 
proposed that the City pledge the full 145 acres of the San Bruno jail campus (including the 
existing Jails No. 3 and No. 7) and County Jail No fi 9 (at 7 & Bryant streets) as collateral 
during the construction period. The combined value of these facilities is expected to be 
approximately SI 00 million. Since the collateral value of these 2 assets is less than the amount 
of the asset transfer certificates (S14S million), a portion of the interest due during construction 
must still be capitalized. The remaining portion of interest due would be appropriated from the 
General Fund on an annual basis. 

The MOPF is proposing that interest be capitalized in full for the first 12 months of construction 
and in part (equal to 1/3 of the payment due) for the remaining 30 months. Under this schedule. 
payments would be appropriated from the General Fund in fiscal years, 2001-02, 2002-03 and 
2003-04. 

I pon completion of construction, the liens on the full San Bruno campus and County Jail 

8/9 would be released and replaced by a lien on the new replacement facility. County Jail No. 3 

Financial Benefit • As indicated in Exhibit 4. hereto, an asset transfer structure would reduce 
the City's costs by 13% as follows: the amount of certificates issued would be SMS. 265. 000 (a 
savings of S22 million) thereby reducing the City's debt service to SI 1,420,371 per year (a 
savings of SI. SS million) and S376.S~2.233 (a savings of $56 million) over the life of the 
certificates. The City would be required to appropriate $4,952,695 in FY 2001-02, $6,578,231 in 
FY 2002-03 and FY 2003-04. respectively for a total of $18,109,157. 



Attachment 3 
Page 3 of 7 

The sources and uses of the asset transfer certificates are as follows: 

Sources 

Par amount of Certificates: S 1 48,265,000 

Interest Earnings for Construction Fund: 12.684.344 

Total Sources: SI 60,949,344 

Uses 

Construction fund: 5132,200,000 

Capitalized interest fund: 1 2,3 1 6,062 

Debt service reserve fund: 1 1,426,918 

Certificate (bond) Insurance: 2,681,075 

Underwriter's Discount: 1,184,355 

Costs of Issuances: 1.140.934 

Total Uses: 5160,949,344 

If the asset transfer certificates were issued in April 2000, they would be issued in the amount of 
5145,255,000. The average interest rate would be 5.66% and the average annual debt service 
(after construction) would be 59,998,547. Debt service over the life of the certificates would be 
5329,952,058 (including payments from amounts available in the capitalized interest and reserve 
funds). The City would be required to appropriate lease payments totaling approximately SI 8.1 
million over the four year period of FY 2001-2002 through FY 2004-2005. 

Attachment 

Cc: Sheriff Hennessey 
Ed Harrington 
Ben Rosenfield 



17 



San Bruno Jail Replacement - City Costs 



Attachment 3 
Page 4 of 7 



1 Peer Review (Estimated): Provide design review during planning/design phase 
to insure compliance with program requirements. This task will be performed by 
consultants with expertise in prison design. 



S500.000 



Testing, Inspection & Contract Administration: 

Materials Testing (Estimated): Provide testing of materials such as soils, concrete. 

reinforcing steel, welding and other testing specified in the contract. 



Inspection: Provide inspection and construction administration services to insure 
work is in compliance with contract documents. 





Class 


5208 


Civil Engineer 


5206 


Associate Engineer 


5204 


Assistant Engineer 


5238 


Assoc. Elect. Engr 


5254 


Assoc. Mech. Engr 


5268 


Architect 


6348 


Electrical Inspector 


6342 


Plumbing Inspector 


1446 


Secretary II 



Cost/Hour 


# of Hrs 


Subtotal 


105.05 


6,500 


682.825 


90.75 


6.000 


544,500 


77.55 


5,000 


387,750 


90.75 


3.500 


317,625 


90.75 


3,500 


317,625 


106.70 


4,000 


426,800 


96.11 


3,750 


360,422 


96.11 


3.750 


360,422 


59.40 


6,250 


371.250 



$350,000 



$3,769,219 



3 Site Hazardous Materials Mitigation & Environ. Issues Monitoring (Estimated): 



S500.000 



4 Project Management: Provide project management and technical support services 
to insure project is completed on schedule and within budget. 

Class Cost/Hour # of Hrs Subtotal 

5508 Project Manager IV 152.90 7.000 1.070,300 

5504 Project Manager II 112.75 6.750 761,063 



S1.831.363 



5 Construction Management (As Needed Scheduling & Estimating): 



S500.000 



6 Regulatory fund & City Contingency: 



$6,000,000 



7 Demolition: 

Hazardous Materials Mitigation (Estimated) 
Demo Existing County Jail 



1 ,750.000 
1,500,000 



$3,250,000 



8 Other City Departments: 
City Attorney's Office 
Sheriff's Department 



250,000 
250.000 



$500,000 



Total 



S1 7.200.581 



Attachment '3 
Fage b of 7 



City & County of San Francisco 

Certificates of Participation (San Bruno Jail Replacement Project) 



Exhibit 2 



Estimated Costs of Issuance 

FINANCIAL ADVISOR FEES 

CO FINANCIAL ADVISORS 
Stephens. McCarthy, Kuenzel & Caldwell 

BOND COUNSEL FEES 

CO BOND COUNSELS 
Jones Hall Hill & White 

Law Offices of Lisa Quateman 
Fees 



Estim ate 



75,075 Maximum Fee Amount 



43.519 Flat Fee Contingent 

Upon Issuance of Bonds 



i # of H ours Total 



S 195.00 



385 S75.075.00 



CITY ADMIN. (Public Finance) 

Director of Public Finance 
Public Finance Manager 



CONTROLLER ADMIN. 

Budget & Operations Mgr 

CITY ATTORNEY FEES 

Bond Attorney 
Real Estate Attorney 
Environmental 

RATING AGENCY FEES 

Standard & Poors 

Moody s 

Fitch 

PRINTING 

Printing of Preliminary Official Statement 
and Official Statements (POS/OS) 

ADVERTISING 

TRUSTEE 

Union Bank of California 

APPRAISAL & SITE ASSESSMENT 

DPW 
Contractor 

PROPERTY INSURANCE 

TITLE INSURANCE 

CONTINGENCY/ROUNDING 

TOTAL COST OF ISSUANCE 



15.000 



Hourly Costs 


S 
S 


93.00 
65.00 


1000 S 
200 S 


93,000 
13,000 


Hourly Cost 


S 


60.00 


250 S 


15,000 


Hourly Cost 











Estimated Flat Fee 



20,000 Estimated Flat Fee 



Estimated Fees 
Estimated Fee 





7.813 




27.469 


S 110,000 


Estimated Fee 


S 20,000 


Estimated Fee 


S 5,000 


Estimated 


$1,140,934.00 





S 319,178 
S 187,564 
S 59.816 



45.000 
45.000 
45,000 



Exhibit 3 



BOND DEBT SERVICE 



Attachment 
Pape b of 7 J 





San Franasco Jail 


April 12 Scale 








Bate Caie Plus lOOop 




Period 










Ending 


Principal 


Coupon 


Inlcrcv 


Debt Service 


06/30/2001 






5,601.653.75 


5,601.653.75 


06/30/2002 






11.203.307.50 


1 1.203.3C7.50 


06/30/2003 






11.203.307.50 


ll.2O2.3C7.50 


06730/2004 






11. 203. 307. 5C 


ll.202.3C7.20 


0600/2005 


1.975.000 


5.500-* 


11.148.995.00 


13.123.995.00 


06/30/2006 


2.085.000 


5600% 


11.036.302.50 


13.121.302.50 


06/30/2007 


12 10.000 


5700% 


10.914.937.50 


13.124.93730 


06/30/20C8 


2J40.000 


5.800% 


10.784.092.50 


1 3. 124,092.50 


06/30/2009 


2.480.000 


5850% 


10.643.692 50 


13.123.692.50 


06/30/2010 


2.530.000 


5 950% 


10.492.910.00 


13.122.910.00 


06/30/2011 


2.795.000 


6.050% 


10.330.118 75 


13.125.118.75 


06/30/2012 


2.970.000 


6 150% 


10.154.242 50 


13.124.242.50 


06000013 


3.160,000 


6.200% 


9.964,955.00 


•2.124.95500 


06/30/2014 


3.360,000 


6.300% 


9.761.155.00 


13. 121.155.00 


06730/2015 


3.580.000 


6.350% 


9.541,650.00 


13.121.650 00 


06/30/2016 


3.815.000 


6 400% 


9.305.905.00 


13.120.905.00 


06/30/2017 


4.070.000 


6.450% 


9.052^567.50 


13.122.567.50 


06/30/2018 


4,345.000 


6.500% 


8.780.097.50 


13.125.097.50 


06/30/2019 


4.635.000 


6550% 


8.487.088.75 


13.I22.0RS 75 


06/30/2020 


4.950.000 


6600% 


8.17:. 942.50 


- .942.50 


06/30/2021 


5.290.000 


6.650% 


''.S32.700.00 


13.122.700.00 


06/30/202: 


5.655.000 


6.700% 


"\467.3<S5 00 


I3.122J65.00 


06/30/2023 


6.050,000 


6.700% 


7,075.247.50 


13. 125.24- 50 


0600/2024 


6.465.000 


6.700% 


6.655.995.00 


13.120.99500 


06/30/2025 


6.915.000 


6700% 


6JO7.765.0O 


13.122.765.00 


06000026 


7,395,000 


6.750% 


3.726.53 1.25 


13.121.531.25 


05/300027 


7.915.000 


6.750% 


5.209.818.75 


13.124.818.75 


06000023 


8,465.000 


6.750% 


4.656.993.75 


13.121.993.75 


06OQO029 


9.055.000 


6.750% 


4.065.693.75 


13.120.693.75 


06OCO030 


9.690.000 


6750% 


3.433.050.00 


13.122.050.00 


06000031 


10.365.000 


6.750% 


2.756,193.75 


13.121.193.75 


06OQO032 


11.090.000 


6.750% 


2.032.C87.50 


13.122.087.50 


06000033 


11.865,000 


6.750% 


1.257,356.25 


13.122.356.25 


06O0O034 


12.695.000 


6 750% 


428.456.25 


13.123.456 25 




170.3 10,000 




262,587.482.50 


432.897.482.50 



Attachment .3 
Page J ot 7 



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Office of the Mayor 
san francisco 




Attachment k 
Page I of. b 

Willie Lewis Brown, Jr. 



Date: May 9, 2000 

To: Ken Bruce, Office of the Budget Analyst 

From: Monique Moyer, Mayor's Office of Public Finance 

RE: County Jail No. 3 Replacement Project 

$ 1 70,3 10,000 Certificates of Participation 
Interest Rate Swap 



.The proposed Resolution pending before the Board of Supervisors requests authorization for me, 
as Director of the Office of Public Finance, to enter into an Interest Rate Swap if market 
conditions are fa\ orable. My office has worked extensively on this matter with Stephens, 
Mc< arthy. Kuenzel & Caldwell (our financial advisor), Lehman Brothers (our senior 
underwriter) and Jones Hall (our bond counsel). We propose that the City execute a Fixed to 
Floating Interest Rate Swap as a method tor offsetting debt service costs during the construction. 
Any earnings generated by the swap would be used to offset debt service payments from the 
General Fund. Details of the proposal are presented below. 



Definition 

Barron s Financial Guidelines defines an interest rate swap as "an arrangement whereby two 
parties (called counterparties) enter into an agreement to exchange periodic interest payments." 
The payments are based on a fixed principal amount, called the notional amount because no 
principal amount is actually exchanged between the parties: only interest is exchanged. One 
party pays interest on the notional amount at a variable rate as the rate actually fluctuates. The 
other party pays interest on the notional amount at a fixed rate For the life of the swap. The fixed 
rate is either bid or negotiated as the s\\ ap is executed. Swaps can be negotiated for a variety of 
terms and are generally not less than 2 years and not more than 20 years. 

A counterparty is simply the second party to the agreement. The City's proposed bond 
documents require that the counterparty be AAA-rated by both Moody's Investor's Service and 
Standard & Poor's Corporation. Common AAA-rated counterparties for municipal swaps 
include special purpose entities whose parent companies are AIG (the insurance conglomerate). 
A MB AC (a traditional bond insurance company) and various Wall Street firms such as Bear 
Stearns. Lehman Brothers. Merrill Lynch, Morgan Stanley. Nationsbank. Salomon Smith Barney 
and Sumitomo Bank. 

Counterparties typically are financial institutions who offer their services as a revenue-generating 
tool for their companies. A counterparty is not entering into the swap as an investment tool, as 
the City will, but rather is acting as a principal between different sectors of the market. To 
facilitate the counterparty's activity, it simultaneously executes a swap or other financial product 

1 DR. CARLTON B. GOODLETT PLACE. ROOM 200 SAN FRANCISCO. CALIFORNIA 94102 

(415) 554-6141 
RECYCLED PAPER 



Attachment 4 
Page 2 of 6 



to hedge its position. In the case of a fixed to floating rate swap, where the counterparty pays a 
fixed rate, it simultaneously executes a floating to fixed rate hedge product. For example, if the 
hedge product generates a return to the counterparty of 5.05% then the fixed swap rate is set at 
5.0%. The extra 5 basis point spread is the counterparty's reward for leveraging its multi-market 
expertise. 



Fixed to Floating Rate Swap Proposal 

Under the fixed to floating rate swap agreement, the City would receive fixed payments from the 
swap counterparty and, in return, would make floating payments based on the BMA Municipal 
Swap Index 1 . This product is especially attractive in concert with the asset transfer scenario 
since any swap earnings could offset General Fund debt payments during the construction vears. 

With regard to the notional amount of the swap, we propose that the notional amount be equal to 
the par amount of the certificates of participation (COPs). Pursuant to the pending Resolution, 
the maximum par amount would be $ 1 70 million; however, the asset transfer scenario assumes a 
maximum amount of SI 48 million. The computations which follow are based on a notional 
amount of S148 million. 

Under a swap agreement, the amounts owed by the City and the counterparty, respectively, will 
be calculated weekly but the transaction will settle periodically; that is, money will actually be 
exchanged between the parties on a monthly, quarterly, semi-annual or annual basis. The 
settlement amounts will vary from period to period as a result of fluctuations in the BMA index. 

Based on market conditions in April 2000, a swap counterparty would pay the City a fixed rate 
swap payment of 4.72% and the City would pay BMA, which has averaged 3.82% since its 
inception in 1989. Mechanically, these payments would offset each other such that the 
counterparty would make a net payment to the City of SI. 3 million, equaling 0.90% of the 
notional amount of SI 48 million. This SI. 3 million could be used to offset debt service. 

While historical rates are never reliable predictors of future rates, the chart below illustrates the 
potential impact of the BMA index's volatility on earnings to the City. I have also provided the 
Federal Funds rate as an added benchmark. The chart analyzes the average annual rate for each 
year of the BMA index's history and calculates the City's gain or loss based on a notional 
amount of SI 48 million and a fixed payor rate of 4.72%. The 4.72% fixed payor rate assumed 
rates as of April 12, 2000 and was priced at 0.76% above the BMA index for that day. Thus, a 
swap negotiated in 1989 would have had a fixed payor rate in excess of 6.88% making the 
economics to the City positive rather than negative as shown in the table. However, there is no 
guarantee that BMA rates will not rise to these or greater levels during the term of the City's 
swap. 



1 The Bond Market Association (BMA) is an international trade association of banks and broker- dealers in U.S. 
securities including municipal securities. The BMA Municipal Swap Index, conceived in 1989, is comprised of a 
broad list of short-term municipal securities across the nation. At any given time, it represents an average of 
approximately 250 separate tax-exempt variable rate demand notes ( VRP\'s> nationwide and is based off of 
Municipal Market Data's tracking of over 10.000 VRDNs. The BMA re-sets every Thursday. 



Attachment U 
Page i of 6 





Federal 




BMA Swap 


Fixed 


BMA 


Net Pavment 


Year 


Funds Rate 


BMA 


Spread 


Pavment 


Pavment 


to the Citv 


1989 


9.21% 


6.12% 


-1 40% 


56,985,600 


59,059,308 


S(2,073,708) 


1990 


8.10% 


5.91% 


-1.19% 


6,985,600 


8,745,946 


(1,760,346) 


1991 


5.69% 


4.37% 


0.35% 


6,985,600 


6,468,169 


517,431 


1992 


3.52% 


2.81% 


1.91% 


6,985,600 


4,152,377 


2,833.223 


1993 


3.02% 


2.37% 


2.35 


6,985,600 


3,505,323 


3,480,277 


1994 


4.21% 


2.84% 


1.88% 


6,985.600 


4.207,754 


2,777,846 


1995 


5.83% 




0.87",, 


6,985,600 


5,691,169 


1.204.431 


1996 


5.30% 


3 43% 


1.29% 


6,985,600 


5,080,669 


4.93 1 


1997 


5.46% 


3.66% 


1.0'. 


6,985,600 


5.413,728 


1,571,872 


1998 


5.35% 


3.43% 


1.29 


6,985,600 


5,077,823 


1,907,777 


1999 


4.97% 




1 .43% 


6,985,600 


4.8": 


2.110,708 


2000 


5.76% 


3.78% 


0.94"., 


6,985,600 


'2,756 


1,392,844 



Life Ave*: 5.54% 3.82% 0.90% Sl.329,774 

5-yrAve: 5.37% 3.5: 1.20% $1,77 

1990s Ave: 5.1 3.60% 1.12 SI, 663,8 15 

rverage is calculated from 1989 inception of BMA. Fed Funds average rate based on 1989 to date 

and not inception of Fed Funds 

The term of the proposed swap would be 42 months, equaling the period of capitalized interest 
on the COPs. Under the asset transfer scenario, payments could be used to offset debt service 
amounts owed to COP holders, which are payable from the General Fund. 



Risks & Mitigations 

Interest Rate I olatility • An interest rate swap is a derivative instrument which, by definition, 
enables the counterparties to participate in differing market sectors and captures an arbitrage 
opportunity between these sectors. The City's swap would be based on the BMA index, while 
our counterparty may hedge its position in the LIBOR or taxable fixed income markets. Since 
the City will be the party owning the variable rate obligation, the City will have interest rate 
exposure for the 42-month life of the swap. In the worst case scenario. BMA rates will exceed 
the fixed payor rate for a significant period resulting in the City making a payment to our 
counterparty. 

Relatively speaking, at 1 1 years old the BMA index is fairly young. Even so. trends in the 
variability (or volatility) of the BMA index have been established. BMA rates typically peak at 
the end of every quarter, with large rate increases occurring both at year end (67% of the time) 
and at the end of April (42% of the time) when income tax checks have cleared, depleting money 
market balances. Rates are generally at their lowest point in the first quarter when the market is 
flooded with cash thereby increasing the demand for short-term paper and thus reducing the 
interest rate. 



Interest rate volatility can be mitigated through the purchase of an interest rate cap. Currently, 
interest rate caps are expensive and such a purchase would reduce the City's benefit dramatically 
beyond any realistic gain offered by a cap. However, since the proposed swap would not be 






Attachment k 
Page 4 of 6 



transacted for several months, we intend to monitor the market, and may purchase a cap if it 
ultimately proves economic. 

We also intend to mitigate interest rate risk by setting an internal policy for a "spot" cushion. In 
simple terms, a swap agreement would not be awarded unless the winning bid provided a healthy 
spread between the fixed payor rate and the BMA rate as of the bid date (i.e., the spot). By 
setting this cushion, we can insure that the initial economics of the swap are extremely positive 
to the City. We further propose that the City place any earnings derived in the first year in an 
escrow account for the term of the swap. This money would then be available to make payments 
to the counterparty in the event that the BMA index exceeded the fixed payor rate. Any balance 
in the escrow account at the end of the swap term can be applied to reduce debt service payments 
of the general fund. Exhibit 1 hereto demonstrates the potential cash flow. 

We are also contemplating a swap payment structure which would set our first settlement date 
for fiscal year 2001-02. The advantage of the long first period is that it enables the City to follow 
its normal budget process in the event that it has to appropriate a payment to the counterparty. 
The disadvantage is that the counterparty gets to keep any float earned during the long period. 
Since we expect to have earnings, this is a realistic disadvantage but one that is viewed as a small 
cost for added assurance. 

Finally, with regard to mitigating interest rate risk, we intend to retain our financial advisor to 
monitor the interest rate swap on an ongoing basis. The financial advisor will monitor 
opportunities for the City to sell its position in the swap in the event that either (1) the swap has a 
positive value to the City and we can liquidate our position for further gain or (2) BMA rates are 
experiencing a sustained rise and we wish to liquidate our position to avoid losses. 

Counterparty Risk • Another significant risk of the interest rate swap is that the counterparty 
declares bankruptcy or experiences extreme financial distress. We propose to mitigate such risk 
by requiring any counterparty to be a AAA-rated entity by two rating agencies. In the event that 
the counterparty is downgraded during the term of the swap, we will require the counterparty 
either (1) to transfer its position in the swap to another AAA-rated entity; or (2) to post collateral 
(i.e., treasury or agency securities) which would be independent of any other liens of the entity. 
Thus, with regard to awarding a swap contract to any counterparty, the winning counterparty 
would be that entity which is AAA-rated and which bids the highest fixed swap rate that meets 
our threshold spot cushion. 



Market Background 

According to the International Swap and Derivatives Association, the Interest Rate Swap market 
is a $53 trillion global market based on outstanding notional amounts. By contrast, the U.S. 
Treasury market is S3. 3 trillion and the U.S. municipal bond market is approximately SI. 5 
trillion based on principal amount of bonds outstanding. Interest rate swaps are common tools 
used by taxable debt issuers around the world, including corporations, mortgage entities and 
agencies of the federal government. Taxable swaps are priced on the basis of the Treasury curve 
to the LIBOR (London InterBank Offered Rate; similar to our Federal Funds rate). Taxable 
swap rates, like LIBOR rates, are quoted daily on both the Telerate and Bloomberg wire services 
just as Treasury securities. Agency securities and a host of other markets are quoted. Fannie Mae 
and Freddie Mac (government-sponsored agencies who issue mortgage-backed securities) swap 



Attachment 4 
Page b ot - 



most of their debt from fixed to floating rate or floating to fixed rate depending upon the assets 
that they are actively managing. 

The municipal (i.e., "tax-exempt") swap market is a much younger and much smaller market 
than its taxable counterpart, consistent with the relationship between the municipal and taxable 
markets. However, the municipal swap market, like the taxable swap market, also follows the 
yield curve but prices as a fraction of LIBOR to reflect the tax-exempt discount. The tax-exempt 
discount is a function of the daily trading value of the BMA index yields relative to LIBOR 
yields. As of April 27, 2000, the spread between BMA and LIBOR was 1 .30%. 

Municipal entities which have executed interest rate swaps include the California Housing 
Finance Authority, the City of Oakland, the State of California Treasurer's Office, the County of 
Los Angeles, the City of Santa Clara, the Sacramento Municipal Utility District, the Southern 
California Metropolitan Water District and, recently, the Huntington Memorial Hospital in 
Southern California. 

Attachment: Exhibit 1 

Cc: Sheriff Hennessey 
Supervisor Yee 
Ed Harrington 
Ben Rosenfield 



Attachment 4 
Page 6 of 6 



City and County of San Francisco 
San Bruno Jail #3 Replacement Project 



Exhibit 1 
5/9/00 



Fixed to Floating Interest Rate Swap Alternative' 

(42-Month Term) 



$148,000,000 Notional Amount 

Year 1 Debt Service** 

Less Capitalized Interest Amount 

Gross Amount Due from General Fund 
Less Interest Rate Swap Amount 
Plus/Minus Deposit, Swap Reserve 

Due from General Fund 

Year 2 Debt Service 

Less Capitalized Interest Amount 
Gross Amount Due from General Fund 

Less Interest Rate Swap Amount 
Due from (available to ) General Fund 

Year 3 Debt Service 

Less Capitalized Interest Amount 
Gross Amount Due from General Fund 

Less Interest Rate Swap Amount 
Due from (available to ) General Fund 

Year 4 Debt Service 

Less Capitalized Interest Amount 

Gross Amount Due from General Fund 
Less Interest Rate Swap Amount 
Plus/Minus Deposit, Swap Reserve 

Due from (available to ) General Fund 

Total G.F. Payment w/o Swap 

Savings w/Swap 

Total General Fund Payment after Swap 



Asset Transfer 
Scenario 



s 


4,876,606 
(4,876.606) 


(832,397) 
832,397 


S 

$ 


9,753.213 
(4,800,517) 


4,952,695 

(1,426.967) 


S 

S 


3,525,728 

9,753,213 
(3,174.982) 


6,578.231 
(1,426,967) 


S 

s 


5,151,264 

9,753,213 
(3,174,982) 


6.578.231 
(1.426.967) 


S 
S 


(832,397) 
4,318,867 

18,109,157 


S 


(5.1 13.298) 



2.995.859 



"Assumes BMA index (and City payment) star constant at historical average of 3.76% 
**.-!// payments based on a partial fiscal year 



Memo to Finance and Labor Committee 

May 17, 2000 Finance and Labor Committee Meeting 

Item 3 - File 00-0780 



Departments: 



Item: 



Source of Funds: 



Superior Court 

Department of Human Resources (HRD) 

Ordinance establishing the titles, salary rates and other 
benefits for new classifications in the Superior Court, 
retroactively from December 31, 1998. 

(1) State Trial Court Agency Fund (96.5 percent) 

(2) City General Fund (3.5 percent) 

The subject ordinance establishes 55 new classifications, 
covering 537.5 positions. The City would fund 16.5 of 
these positions, and the State Trial Court Agency Fund 
will fund the remaining 521 positions. Even though the 
majority of increased costs would be assumed by the 
State, the proposed ordinance establishes new 
classifications and sets the schedule of compensation for 
such classifications. 



Description: 



Effective December 31, 1998, the former Municipal and 
Superior Courts were consolidated into one Court to be 
known as the Superior Court of California, County of San 
Francisco. Prior to this consolidation, each of the former 
courts maintained its own classifications. As a result of 
consolidation, a new classification series was needed to 
reflect the work being performed in the new Superior 
Court. To fill this need, the Superior Court conducted a 
comprehensive classification and pay study to establish 
an appropriate classification plan for its employees. The 
proposed ordinance establishes the new titles, rates of 
pay and other benefits for all but four classifications (28 
positions) to be used in the consolidated Superior Court. 
When the new classifications are formally established, 
there will be bargaining unit and labor representation 
implications. (See Attachment I, provided by the Superior 
Court, for a more detailed explanation). 

The Superior Court currently has a total of 565.5 
authorized positions, of which 18.5 are fully funded by the 
City. The subject ordinance establishes 55 new 
classifications, covering 537.5 of the Superior Court's total 
existing 565.5 positions. The City will fund 16.5 of the 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 17, 2000 Finance and Labor Committee Meeting 

positions covered by tbe new classifications, as noted in 
Attachment II, provided by the Superior Court. The 
remaining 28 (including 2 City funded) Superior Court 
positions (565.5 existing positions less 537.5 covered 
positions) will remain in their current classifications, 
unchanged for the present time. 

Several of the classifications listed on Attachment II will 
not change in scope, duties or salary. Only then- 
classification codes will change to make them more 
consistent with the new set of classifications. The 
positions belonging to bench officers of Superior Court 
Judge, Court Commissioner, Bail Commissioner, and Pro 
Tern Commissioner appear on this ordinance only for the 
purposes of changing the classification code and to ensure 
that the benefits of incumbents continue without change. 
Ms. Cheryl Martin of the Superior Court advises that 
under the State Constitutional Amendment that 
permitted court consolidation, court employees were 
guaranteed that they would not lose any salary or 
benefits as a result of consolidation. In addition, according 
to Ms. Martin, as jobs are being merged it is essential 
that the newly consolidated Superior Court provide equal 
pay for equal work performed. Therefore, Ms. Martin 
advises that increased costs will be incurred in order to 
equalize salaries between classes in the Superior Court. 

Costs to City: According to Ms. Martin, the increased cost of the 

proposed ordinance to the City's General Fund would be a 
total of $110,257 for the period from December 31, 1998 
through June 30, 2001 (See Comment No. 1). The total 
incremental cost for the General Fund and State Trial 
Court Agency Fund for the period from December 31, 
1998 through June 30, 2001 would be $3,176,604, as 
shown in the table below. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 17, 2000 Finance and Labor Committee Meeting 



Fiscal Year 


Cost to State 


Cost to City 


Total Cost 


FY 1999-2000* 

Salaries 
Benefits (15%) 


$1,012,236 
151,835 


$36,740 
5,511 


$1,048,976 
157,346 


Subtotal 


$1,164,071 


$42,251 


$1,206,322 


FY 2000-2001 

Salaries 
Benefits (15%) 


$1,654,153 
248.123 


$59,135 
8,871 


$1,713,288 
256,994 


Subtotal 


$1,902,276 


$68,006 


$1,970,282 










Total 


$3,066,347 


$110,257 


$3,176,604 



Comments: 



* According to Ms. Martin, the amount of $42,251 in 
increased costs to the City for Fiscal Year 1999-2000 will 
be almost entirely comprised of one-time bonus amounts, 
as the Superior Court anticipates appointments to the 
new classes occurring during the last two pay periods of 
the Fiscal Year (See Comment No. 1). Ms. Martin advises 
that the Superior Court anticipated and budgeted for 
these increased costs and that the Superior Court's Fiscal 
Year 1999-2000 budget contains sufficient funds to cover 
lump-sum payments. 

1 According to Ms. Martin, the classification analysis to 
te these new classifications required a great deal of 
time and effort in order to study the work performed in 
the new Superior Court and to develop the appropriate 
classifications and salary rates. Ms. Martin advises that 
many Superior Court employees have been performing 
additional responsibilities at various times since the 
December 31, 1998 consolidation date. Therefore, in 
addition to negotiating the new rates of pay for the new 
classes, various labor organizations negotiated and 
obtained a bonus for employees to compensate them for 
the period of time between consolidation and the 
implementation of the new classes. The beginning date for 
this time period will vary, based upon classification and 
union representation. As previously stated. Ms. Martin 
advises these amounts will be paid as a one-time lump 
sum payment. Ms. Martin advises that the Superior 
Court has funding in its Fiscal Year 1999-2000 budget to 
cover these lump sum payments. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



in 



Memo to Finance and Labor Committee 

May 17, 2000 Finance and Labor Committee Meeting 



2. As stated in Comment No. 1 above, the subject 
ordinance would authorize the Superior Court to 
reimburse certain employees for services provided since 
December 31, 1998. As such, the subject ordinance should 
be amended to provide for retroactive authorization. 

3. As of the writing of this report, the Controller's Office 
had not provided cost estimates for the subject ordinance. 

4. California Government Code Section 69900 requires 
that the salary rates for Superior Court employees be set 
by joint action of the Judges of the Superior Court and the 
Board of Supervisors. According to Ms. Martin, the 
Judges approved the proposed classifications and 
compensation scheme on April 20, 2000. 

5. Based on tables provided by the Superior Court, the 
proposed ordinance establishing new classifications will 
result in annual salary adjustments ranging from zero to 
an increase of $27,271 annually. For example, the current 
Classification 297 Deputy Clerk earning $51,197 annually 
would adjust to become a Classification 0385 Court 
Computer Facilities Coordinator, earning $78,468 
annually, an increase of 53 percent. 

6. Item 4, File 00-0781, and Item 5, File 00-0782, of this 
report to the Finance and Labor Committee also pertain 
to compensation for employees of the Superior Court. 

Recommendations: 1. Amend the proposed ordinance to provide for 

retroactive authorization, in accordance with Comment 
No. 2 above. 

2. Approval of the proposed ordinance, as amended, is a 
policy matter for the Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 17, 2000 Finance and Labor Committee Meeting 

Item 4 - File 00-0781 



Departments: 



Item: 



MOU period: 



Source of Funds: 



Description: 



Superior Court 

Department of Human Resources (HRD) 

Ordinance implementing the provisions of the 
Memorandum of Understanding (MOU) between the 
Superior Court and the International Federation of 
Professional and Technical Engineers, Local 21. 

July 1, 1999 through June 30, 2002 (Three yeaj 

(See Comment X<>. 1 ) 

(1) State Trial Court Agency Fund (92.6 percent) 

(2) City General Fund (7.4 percent) 

The propoM-.l ordinance would implement the provisions 
of a Memorandum of Understanding (MOU) between the 
Superior Court and the International Federation of 
Professional and Technical Engineers, Local 21 (Local 21) 
for a 3-year period, from July 1. 1999 through June 30, 
2002. 



The subject MOU is tor the following 7 classifications, 
covering a total of 38 positions: 



Class 
Code 


Classification 
Title 


State 
Funded 


City 
Funded 


Total 


0174 
0648 
0649 
0655 
0676 
0819 
0821 


Attorney, * nil Criminal 

• Investigator 
Probate Examiner 
Counselor, FCS 

Research Assistant 
MIS Specialist III 
Computer Coordinator 


5 
5 
3 
6 

11 

1 
1 


1 

■J 


5 
5 

3 
7 

13 
1 
1 


TOTAL 


35 


3 


38 



As shown in the table above, only one position in 
Classification 0655, Counselor FCS. and two positions in 
Classification 0676, Legal Research Assistant, are funded 
from the City's General Fund. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 17, 2000 Finance and Labor Committee Meeting 



The major fiscal provisions of the MOU implemented by 
the proposed ordinance apply to all employee 
classifications covered by the MOU, as listed in the above 
table. These fiscal provisions are summarized as follows: 

Wage Increases 

Employees in all of the above noted classifications would 
receive a 3.5 percent salary increase retroactive to July 1, 
1999, and an additional 3.75 percent salary increase 
effective July 1, 2000. No salary increase is included in 
the MOU for Fiscal Year 2001-2002. The MOU contains a 
re-opener clause for a potential increase of an unknown 
amount for the third year of the MOU, effective July 1, 
2001. This salary increase would be subject to separate 
legislative approval by the Board of Supervisors. 

Health Care Benefits 

The MOU continues health care coverage as before, 
through the City's Health Service System with full 
coverage for the employee. According to Ms. Cheryl 
Martin of the Superior Court, under the proposed MOU, 
dependent health care payments by the Superior Court 
would change from a flat rate of $225 per month to a rate 
equal to 75 percent of the amount paid for an employee 
with 2 or more dependents who chooses Kaiser medical 
coverage. Ms. Martin advises that this change is similar 
to other City health policies and will pose minimal cost to 
the City. In lieu of this subsidy, staff attorneys covered by 
the MOU may receive a cash payment of a slightly lesser 
amount. Under the proposed MOU, Long Term Disability 
Insurance would be extended to all employees covered by 
the MOU. 

Retirement Benefits 

The Superior Court will continue to fund the employee's 
contribution to the City's Employee Retirement System 
(SFERS) in the following percentages: 

a 8 percent of salary for SFERS Tier I members 
(employees hired prior to November 1976) 

j 7.5 percent of salary for SFERS Tier II members 
(employees hired after November 1976) 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 17, 2000 Finance and Labor Committee Meeting 



According to Ms. Martin, these r retirement 

benefits are a continuation from the prior ordinances and 
are only affected by the increased salary rates included in 
the MOU. 



Cost to the City 
of MOU: 



Comments: 



Aa shown in the Attachment, the Controller estimates 
thai the proposed MOU with Local 21 will result in 
estimated incremental costs of $117,697 in Fiscal Year 
1999-2000 and $131,366 m Fiscal Year 2000-2001, for a 
total of $249,062. The Controller's Office advises that, of 
these incremental costs, approximately $9,600 would be 
General Fund costs in Fiscal Year 1999-2000 and 
approximately S 10,600 would be General Fund costs for 
Fiscal Year 2000-2001, for an estimated total incremental 
cost to the City of $20,200. 

As previously stated, the subject MOT contains a re- 
opener clause for a potential increase of an unknown 
amouni for FY 2001-2002. This salary increase would be 
subject to separate legislative approval by the Board of 
Supervisors. 

1. The subject MOU would b< inactively to 
July 1, 1999. Therefore, the proposed ordinance should be 
amended to provide for retroactive authorization. 

2. According to Ms. Martin, the salary increases for Fiscal 
Year 1999-2000 would be paid in a lump sum payment to 
employees upon approval of the subject ordinance. Ms 
Martin advises that the Superior Court has sufficient 
funds in its Fiscal Year l!f!J!»-2000 budget to cover these 
payments. 

3. California Government Code Section 69900 requires 
that the salary rates for Superior Court employees b< 

by joint action of the Judges of the Superior Court and the 
Board of Supervisors. According to Ms. Martin, the 
Superior Court and Local 21 came to an agreement on the 
MOU in early April of 2000. and the Judges of the 
Superior Court ratified the agreement on April 20. 2000. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 17, 2000 Finance and Labor Committee Meeting 

4. Item 3, File 00-0780, and Item 5, File 00-0782, of this 
report to the Finance and Labor Committee also pertain 
to compensation for employees of the Superior Court. 

Recommendations: 1. Amend the proposed ordinance to provide for 

retroactive authorization, in accordance with Comment 
No. 1 above. 

2. Approval of the proposed ordinance, as amended, is a 
policy matter for the Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



*S5^\ CITY AND COUNTY OF SAN FRANCISCO. 




Attachment, Page 1 of 



OFFICE OF THE CONTROLL 



Edward rlarTiaj 
Com 

Matthew H. 
Chief Assistant Con 



May 11,2000 

Ms. Gloria L. Y;mng, Clerk of the Board 

Board of Supervisors 

1 Dr. Carlton B. Goodlert Place 

San Francisco, < :A 94102 

RE- Memoranda of Understanding between Local 21 and the Tnal Courts 
File No. 00-0781 

Dear Ms. Youm;, 

L ^ ^ a QTOi, am submirtine a cost analysis of an amendment to the Memorandum 
ta accordance, ^°'^^™ ^Zl Tnal Courts. The MOU covert- ■* penod My 1. 
rowt^l "Si -d arf^ ap pro xuna Kl y 4 , employees wUh a salary base of appro^cly 

$2.76 million. 

, „. „.. n TP , n \r m estimated incremental costs of approximately 
Based on our aiulysis^he ^^^^^ m^g wage -related fringe benefits, the 
SI 18.000 in FY 1999-2000, ^^£™^ salarv ^cunt of 'approximately 425* in FY 
•^^JZW^SZ see Attach A for specific cost esumates. 

Thc cost of salaries and bene** for the ^oru^of £^^^££5S&£ 
understanding : « budgeted through ^J^^XTlLZ, budgeted through the City's General 
However, this memorandum also over ^° e ^ 

for FY 1999-2X0. 

P,ease nore »« .0= P«^„^!^^^*^^^^^^^ 

mercore rhe f,1> cos, of to MOUc-*. £ -£J25~J& BtW 
or concerns pkase contact me at 5>4-75UO or rc e w 



Sincerely, 

Eaward M. H iringxon 
Controller 

cc: Alice Villaaomez.ERD 

Harvey Rose, Budget Analyst 



415-5^.7500 



Cry Hill 



, , D,. Cir>u>n B. GooUa.t. Ptnc • *>om 316 • San France CA *10:-t*M 



Attachment A 

Trial Court Local l!1 

Estimated Costs 1 999-2000 to 2001-2002 

Controller's Officii 



Attachment, Page 2 of 2 



Annual Incremen t al Costs/fSavinqs) 

Wage Increase 

3.5% on July 1, 1399 
3.75% on July 1, ?000 

Dependent Health @ 75% of Kaiser coverage 



FY 1995-2000 FY 2000-2001 



596,848 



6.012 



$107,397 
7,515 



Wage-Related Fringe Increases 



14.837 



16,453 



Total Estimated ! icrementat Costs 
Annual Amount ikbove 1998-99 Level 
Cumulative Total Above 1998-99 Provisions 
Incremental Cost. % of Salary Base 



117,697 



117,697 



4.25% 



131.365 



249,062 

S366.759 

4.59% 



Memo to Finance and Labor Committee 

May 17, 2000 Finance and Labor Committee Meeting 

Item 5 - File 00-0782 



Departments: 



Item: 



Time Period: 



Superior Court 

Department of Human Resources (HRD) 

Ordinance implementing schedules of compensation and 
the continuation of health and retirement benefits for 
certain professional classifications in the Superior Court. 

July 1. 1999 through June 30. 2001 (Two Yeai 
(See Comment No. 1) 



Source of Funds: 



Description: 



i 1 1 State Trial Court Agency Fund (94. 1 percent) 
(2» ( !ity < reneraJ Fund (5.6 percent I 

The proposed ordinance would implement salary 
increases and the continuation of health and retirement 
benefits for the period from July 1, 1999 through June 30, 
2001 for professional classifications in the Superior Court 
that arc- not represented by a union. The subject 
ordinance is for the following 12 cla- as. covering a 

total of 19 position 



Class 


Classification 


State 


City 




Code 


Title 


Funded 


Local 


Total 


0175 


Senior < 'nminal Research Attorney 


1 




1 




Court Traffic System Programmer 


2 




_ 


•J 11 


Court Traffic Senior Application Programmer 


1 




1 


246 


Court Application Programmer 


1 




1 


•J IS 


Court Technical Programmer 


_ 




2 


260 


Legal Advisor 


3 




3 




Assist System Coordinator 


1 




1 




>urt Program Analyst Mngi 


1 




1 


360 


Deputy Clerk (Research Attorney) 


3 




3 


0366 


Dependency Mediation Assistant 





1 


1 


0811 


MIS Specialist 1 


_ 




2 


0818 


MIS Specialist II 


1 




1 


TOTAL 


18 


1 


19 



As -hown in the table above, one position in Classification 
0366, Dependency Mediation Assistant, is funded from 
the City's General Fund. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 17, 2000 Finance and Labor Committee Meeting 



The major fiscal provisions of the proposed ordinance 
apply to all employee classifications listed above. These 
fiscal provisions are summarized as follows: 

Wage Increases 

Employees in all of the above noted classifications would 
receive a 3.5 percent salary increase retroactive to July 1. 
1999 and an additional 3.75 percent wage increase 
effective July 1, 2000. 

Health Care Benefits 

The subject MOU continues health care coverage as 
before, through the City's Health Service System with full 
coverage for the employee. According to Ms. Cheryl 
Martin of the Superior Court, under the proposed 
ordinance, dependent health care payments by the 
Superior Court would change from a flat rate of $225 per 
month to a rate equal to 75 percent of the amount paid for 
an employee with 2 or more dependents who chooses 
Kaiser medical coverage. Ms. Martin advises that this 
change is similar to other City health policies and will 
pose minimal cost to the City. In lieu of this subsidy, staff 
attorneys covered by this ordinance may receive a cash 
payment of a slightly lesser amount. Under the proposed 
ordinance, Long Term Disability Insurance would be 
extended to all employees covered by this ordinance. 

Retirement Benefits 

The Superior Court will continue to fund the employee's 
contribution to the City's Employee Retirement System 
(SFERS) in the following percentages: 

q 8 percent of salary for SFERS Tier I members 
(employees hired prior to November 1976; and 

□ 7.5 percent of salary for SFERS Tier II members 
(employees hired after November 1976). 

According to Ms. Martin, these rates for retirement 
benefits are a continuation from the prior ordinances and 
are only affected by the increased salary rates included in 
this ordinance. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 17, 2000 Finance and Labor Committee Meeting 

Cost to City: As shown in the Attachment, the Controller estimates 

that the proposed ordinance will result in estimated 
incremental costs of $52,415 in Fiscal Year 1999-2000 and 
$58,506 in Fiscal Year 2000-2001, for a total of $110,921. 
The Controller's Office advises that, of these incremental 
costs, approximately $1,739 would be General Fund costs 
in Fiscal Year 1999-2000 and approximately $1,928 would 
be General Fund costs for Fiscal Year 2000-2001, for an 
estimated total incremental cost to the City of $3,667. 

Comments: 1. The subject ordinance would be effective retroactively 

to July 1. 1999. Therefore, the proposed ordinance should 
be amended to provide for retroactive authorization. 
ording to Ms. Martin, the Superior Court waited to 
submit the subject ordinance to the Board of Supervisors 
until the Superior Court reached an agreement with the 
Internationa] Federation of Professional and Technical 
Engineers. Local 21, in early April of 2000 (Item 4, File 
00-0781, of this report to the Finance and Labor 
Committee). Ms Martin advises that the Judges of the 
Superior Court ratified this MOU on April 20, 2000. 

2. According to Ms. Martin, the salary increases for Fiscal 
Year 1999-2000 would be paid in a lump sum payment to 
employees upon approval of the subject ordinance. Ms. 
Martin advises that the Superior Court has sufficient 
funds in its Fiscal Year 1999-2000 budget to cover these 
payments. 

3. California Government Code Section 69900 requires 
that the salary rates for Superior Court employees be set 
by joint action of the Judges of the Superior Court and the 
Board of Supervisors. According to Ms. Martin, the 
Judges approved the subject salary increases and benefits 
on April 20. 2000. 

I. Item 3. File 00-0780, and Item 4. File 00-0781, of this 
report to the Finance and Labor Committee also pertain 
to compensation for employees of the Superior Court. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 17, 2000 Finance and Labor Committee Meeting 

Recommendations: 1. Amend the proposed ordinance to provide for 

retroactive authorization, in accordance with Comment 
No. 1 above. 

2. Approval of the proposed ordinance, as amended, is a 
policy matter for the Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 




El CITY AND COUNTY OF SAN FRANCISCO 



Attachment, Page 1 of 2 
OFFICE OF THE CONTROL 



I. 



Edward Harrinf 
1 '.autre 

Matthew H. Hy 
Chief Assistant L jntrr 



May 11,2000 

Ms. Gloria L. Yrung, Clerk of the Board 

Board of Supervsors 

1 Dr. Carlton B. Goodlen Place 

San Francisco, (A 94 102 



R£: 



vlemorandum of Understanding between Unrepresented EmDloyees and the Trial Courts 
: Ue No. 00-0782 



Dear Ms. Youn;:;, 

In accordance with Ordinance 92-94, 1 am submitting a cost analysis of an amendment to tbe Memorandum 
of Understanding (MOU) between Unrepresented Employees and the Trial Courts. The MOU covers the 
period July 1, 1 399 through June 30, 2001, and affects approximately 18.75 employees with a salary base 
of approximate, y $1.32 million. 

Based on our a lalysis, the amendment will result in estimated incremental costs of approximately S52.400 
in FY 1999-20)0,' and S58.500 in FY 2000-2001. Including wage-related fringe benefits, the amendment 
will result in a ;ost increase above the base salary amount of approximately 4.26% in FY 1999-2000 and 
4.59% in FY 2i 00-2001. Please see Attachment A for specific cost estimates. 

The cost of sa.aries and benefits for the majority of the employees covered under this memorandum of 
understanding ;ue budgeted through the Trial Courts Agency Fund and paid for by the State of California. 
However, this memorandum also covers one employee who is budgeted through the City's General Fund. 
The General F.ind incremental cost is approximately SI. 739 for FY 1999-2000 and SI, 928 for 2000-2001. 
Sufficient func ; for these cost increases have already been appropriated for FY 1999-2000. 

If you have ar y additional questions or concerns please contact me at 554-7500 or Peg Stevenson of my 
staff at 554-7522. 



Sincerely, 




:dward M. H:rnngton 
Controller 

cc: Alice V'illagomez, ERD 

Harvey Rose, Budget .Analyst 



■U5-4SJ-7SOO 



City Hall • 1 Dr. Cirtion B. G<xxlJ«u Pl»c« • Room Jl* • S«n Frwwuco CA +410; -i**» 



Attachment A 

Trial Court Unrepi ssented Employees 
Estimated Costs ' 999-2000 to 2000-2001 
Controller's Offta: 



Attachment, Page 1 of 2 



Annual Incremental Costs/(Savinqa) 

Wage Increase 

3.5% on July 1, 1!)99 
3.75% on July 1 , :?000 

Dependent Healtli @ 75% of Kaiser coverage 



FY 1999-2000 FY 2000-2001 



$43,111 



2.700 



$47,807 
3,375 



Wage-Related Fringe Increases 



6,605 



7,324 



Total Estimated Incremental Costs 
Annual Amount itfjove 1998-99 Level 
Cumulative Total Above 1996-99 Provisions 
Incremental Cosi % of Salary Base 



52,415 



58.506 



52,415 



4.26% 



110,921 

S1 63,337 

4.59% 



Memo to Finance and Labor Committee 

May 17, 2000 Finance and Labor Committee Meeting 



Item 6 - File 00-0794 

Department: 

Item: 



Description: 



Human Services (DHS) 

Ordinance amending Article XV, Part I of the San 
Francisco Municipal Code (Administrative Code), which 
establishes cash revolving accounts for the City and County 
of San Francisco departments, by amending section 10.157 
to increase the total amount in the existing Department of 
Human Services cash revolving account; and by deleting 
sections 10.157-1 and 10.157-2 to consolidate the Aid to 
Families with Dependent Children (AFDC) and General 
Assistance (GA) cash revolving accounts into one 
I leparl ment of Human Services cash revolving account. 

As requested by the Department of Human Services, the 
proposed ordinance would amend Section 10.157 to 
integrate three separate revolving accounts, as set out by 
Sections 10.157, 10.157-1, and 10.157-2 into a single 
revolving account. DHS would maintain separate bank 
accounts within the single revolving account, which would 
be authorized by the proposed amended Section 10.157. 
Additionally, the proposal amendment would increase the 
total amount of funds available in the revolving account. 
from $270,000 (which is currently the combined total for 
the three separate revolving accounts described above) to 
000, an increase of $180,000 or 67 percent. In 
addition, sub-accounts would be created in place of the 
Department of Human Services cash revolving account, 
cash revolving accounts for AFDC and GA, and a forth sub- 
account for Child Support Services (CSA). The $180,000 in 
additional funds would be placed in the proposed new CSA 
sub-account, bringing the number of sub-accounts to be 
operated by DHS under the proposed consolidated cash 
revolving account to four. 

Currently. DHS operates three separate cash revolving 
accounts: 1) a $20,000 account for the DHS "Cashier's 
Revolving Fund", which they use to disburse checks for 
employee reimbursements and for ancillary services to 
clients (books, clothes, etc.) (Section 10.157). 2) a S50.000 
cash revolving account for CALWorks (the "AFDC 
account"), which DHS uses to disburse emergency funds to 
CALWorks welfare recipients (Section 10.157-1), and 3) a 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 17, 2000 Finance and Labor Committee Meeting 

$200,000 cash revolving account for the General Assistance 
program which DHS uses to disburse emergency funds for 
General Assistance recipients (Section 10.157-2). The 
proposed amendment would, instead of creating a fourth 
cash revolving account for DHS's San Francisco CSA pilot 
program (see below), consolidate each of the accounts above 
into a single revolving account under Section 10.157. DHS 
would maintain four sub-accounts within the cash revolving 
account. 

According to Ms. Julie Brenman of DHS, DHS has 
requested an increase of $180,000 in their cash revolving 
account balance in order to create a fourth sub-account 
within the proposed new revolving account, for Child 
Support Assurance (CSA), a pilot program that has the aim 
of being an alternative to, and exit from, traditional welfare 
programs for welfare recipients with children. The amount 
of $180,000 is based on anticipated expenditures from the 
proposed CSA account, and is set at $180,000 in order to 
minimize the frequency of requests with which DHS would 
have to ask the Controller for periodic replenishment of 
that account. The Board of Supervisors approved an 
agreement between DHS and the California Department of 
Social Services for a CSA three-year demonstration 
program on November 15, 1999 (File No. 99-2036). The 
proposed increase in the cash revolving account balance 
would create a separate sub-account within the proposed 
DHS revolving account for timely disbursement of benefit 
payments to single working parents with children. 

Comments: 1. According to Ms. Brenman, DHS uses a database that is 

shared among 18 counties in California for case tracking 
and management of its CALWorks and General Assistance 
programs. Because this database is shared, altering it to fit 
the particular needs of the San Francisco CSA pilot 
program is not possible. Unique technical requirements for 
the timely disbursement of funds under the CSA pilot 
program necessitates an independent database with an 
independent revolving account. DHS currently operates 
the General Assistance program and the AFDC program in 
the same manner. 

2. According to Ms. Brenman, Mr. Harold Guttersloh of the 
Controller's Office advised that a) DHS establish a 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 17, 2000 Finance and Labor Committee Meetinu 



revolving account for CSA, and that b) the three current 
revolving accounts be consolidated into a single revolving 
account with multiple sub-accounts. According to Ms. 
Brenman, other departments within the City, including the 
Municipal Railway, the San Francisco International 
Airport, and the Public Utilities Commission, currently 
ite single revolving accounts with multiple sub- 
account.-. 



Recommendation: Approve the proposed ordinance. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 17, 2000 Finance and Labor Committee Meeting 



Item 7 - File 00-0839 
Department: 

Item: 
Description: 



Public Utilities Commission (PUC) 
Water Department 

Ordinance approving the revised schedule of rates to be 
charged by the Public Utilities Commission for wholesale 
water service to its Suburban Resale Customers for Fiscal 
Year 2000-2001. 

The PUC establishes two separate water rate schedules. 
One schedule is for the Water Department's retail 
customers, and the other schedule is for the Water 
Department's "Suburban Resale Customers". Suburban 
Resale Customers are, collectively, 29 water agencies, 
primarily within the Counties of San Mateo, Santa Clara, 
and Alameda, which purchase water at wholesale rates 
from the San Francisco Water Department under a long 
term contract for resale to their customers. 

Water rate schedules for retail customers were last 
amended by the PUC effective July 1, 1996, when retail 
rates to the water users in San Francisco and outside the 
City were increased by 7.6 percent. Suburban Resale 
Customer water rate schedules were last amended 
effective July 1, 1999, when such rates were increased by 
34.7 percent in accordance with the terms of a 1984 
settlement agreement described below. 

The Board of Supervisors can only approve or disapprove 
water rate schedules submitted by the Public Utilities 
Commission. The proposed water rate schedules cannot 
be amended by the Board of Supervisors. Under Charter 
Section 2.109, the Board of Supervisors may approve, or 
reject, any rate, fee or similar charge to be imposed by 
any department, board, or commission. 

Proposition H, approved by the voters on June 2, 1998, 
mandates that Water rates and Sewer Service Charge 
rates are to remain at their current levels until July 1, 
2006, subject to the following exceptions: 

• With the concurrence of the Board of Supervisors and 
the Mayor, the rate freeze would not apply to the fees 
charged to customers located outside of Sao Francisco. 

Board of Supervisors 

Budgkt Analyst 



Memo to Finance and Labor Committee 

May 17, 2000 Finance and Labor Committee Meeting 



• The rate freeze could be suspended if the City declared 
an emergency, as defined by the Charter. 

• The fees could be increased to repay the money 
borrowed by the City for improvements to the water 

■m approved by the voters in November 1997. 
These fee increases could not exceed a total of 18 
percent. 

• The fees could be increased to repay money borrowed 
for further improvements to the water and sewer 

ms approved by the voters in the future. 

The PUC is proposing no change to its current water rates 
for its retail customers. However, the PUC is proposing 

an approximate l l percent increase in rates charged to 
its Suburban Resale Customers. This increase is 
istent with the terms of a 1984 settlement agreement 
between the Suburban Resale Customers and the City. 
and a related master water sales contract, which was 
approved by the Board of Supervisors and resolved 
litigation which had been pending since 1974. 

The settlement agreement established the method by 
which suburban resale rates are calculated each year. 
Under that agreement, cost accounting and rate setting 

iivided and based on the costs of providing water 
services to retail customers, as distinct from the 
Suburban Resale Customers, which purchase water from 
the San Francisco Water Department at wholesale rates. 
The City sets the wholesale water rates to recover all 
jociated with providing water to the Suburban 
Resale Customers, plus a rate of return on all debt funded 

- and future revenue funded ass 

The difference between suburban resale water revenues, 
and the cost computations made in accordance with the 
settlement agreement requirements, are credited to a 
balancing account" which must be factored in to the rate 
calculation for the following year. If the projected 
balancing account value and projected revenue from 
Suburban Resale Customers exceeds or falls short of (a) 
projected annual costs, plus (b) a return on assets, for the 
Suburban Resale Customers by an amount greater than 2 
percent of the sum of projected annual costs and a return 
on assets, adjustments to the Suburban Resale Customer 

Board of Supervisors 
Budget Analyst 



Memo to Finance and Labor Committee 

May 17, 2000 Finance and Labor Committee Meeting 



rate schedules are mandated by the 1984 settlement 
agreement. 

The projected July 1, 2000 balancing account value is 
estimated to be a negative $3,142,000 and the projected 
June 30, 2001 balancing account value is estimated to be 
a negative $3,140,000 based on existing Suburban Resale 
Customer rates. The PUC has therefore recommended an 
increase of approximately 4.4 percent in suburban resale 
rates based on the requirements of the settlement 
agreement, in order to eliminate the projected negative 
balance in the balancing account of $3,139,870 as of June 
30, 2001. This rate increase of approximately 4.4 percent 
would increase projected FY 2000-2001 suburban resale 
water service revenues by $3,140,000 from $71,429,000 to 
$74,569,000. 

The table below displays the Water Department's 
projected Revenues and Expenditures for FY 2000-2001. 



FY 2000-2001 WATER DEPARTMENT PROJECTED 
REVENUES AND EXPENDITURES 

Beginning Operating Fund Balance $31,295,000 

Projected Revenues 

Retail Water Sales $66,492,000 

Suburban Resale Water Sales 74,569,000 

Other Revenues 14.715.000 

Total Revenues 155.776.000 

Total Sources 187,071,000 

Projected Expenditures (Subject to appropriation approval in 
the Water Department's FY" 2000-2001 budget) 158.183.000 

Ending Operating Fund Balance $28,888,000 



Comments: 1. As previously noted, the PUC has proposed no water 

rate increases for retail customers of the Water 
Department. Based on the Water Department's projected 
revenues and expenditures. ;is can be seen from the table 

Board of Supervisors 
Budgki An \i vst 



Memo to Finance and Labor Committee 

May 17, 2000 Finance and Labor Committee Meeting 



above, the Water Department's current unappropriated 
surplus will decrease by $2,407,000 ($31,295,000 
Beginning Balance less $28,888,000 Ending Balance). 
Without the proposed increase of 4.4 percent for 
Suburban Resale Customers, the Ending Balance would 
decrease by an additional $3,140,000, from the projected 
$28,888,000 to $25,748,000. 

2. In accordance with the revenue requirements for 
Water Revenue Bonds, net revenues in each Fiscal Year 
must be equal to at least 1.25 times more than the 
outstanding revenue bond annual debt service due in that 
fiscal year (commonly known as the required debt service 
coverage ratio). Based on the PLC's recommended rate 
increase of zero percent for retail customers and II 
percent for Suburban Resale Customers, the projected 
debt service coverage for FY 2000-2001 is 3.10 which 
exceeds the required debt service coverage ratio of 1 
Without the proposed } 1 percent increase, the debt 
service coverage ratio would be 2.96. 



Recommendation: Approve the proposed ordinance. 



Board of Supervisors 
Budget Analyst 



Memo to Finance and Labor Committee 

May 17, 2000 Finance and Labor Committee Meeting 

Items 8 and 9 - Files 00-0844 and 00-0843 



Departments: 



Department of Public Works (DPW) 
City Architect 



Items: 






Amount: 



Source of Funds: 



Description: 



Comments: 



File 00-0844: Ordinance appropriating $12,000,000 
in Federal Hazard Mitigation Grant Funds to the 
City Hall Project, transferring funds to the General 
Fund and appropriating $12,000,000 for City 
Seismic Safety Projects. 

File 00-0843: Ordinance appropriating $10,791,665, 
including $7,243,940 from Earthquake Safety Bond 
Project balances and interest earnings and 
$3,547,725 from City Hall Bond interest earnings, 
to capital improvements for the City Hall Project. 

$ 10,791,665 (File 00-0843) 
12.000.000 (File 00-0844) 
$ 22,791,665 Total 

$ 3,547,725 - 1995 City Hall Proposition A Bond 
Fund Interest 
3,388,927 - 1990 Earthquake Safety Program 

Phase 2 (ESP2) Bond Fund Interest 
3.855.013 - Reappropnation of ESP2 Bond Funds 
$10,791,665 - Total for File 00-0843 

$12,000,000 - Federal Emergency Management 
Agency (FEMA) Hazard Mitigation 
Grant (File 00-0844) 

Of the total $22,791,665 in the two proposed 
supplemental appropriation ordinances, (1) 
$10,791,665 would be applied to funds needed to 
reimburse the General Contractor and 
subcontractors for the completed seismic repairs 
and renovation of City Hall, and (2) $12,000,000 
would be appropriated to the City Hall Project and 
then returned to the City's General Fund to be used 
for other seismic safety projects in the City. 

1. In April of 1998, a supplemental appropriation 
request of $22,477,779 of General Fund monies 
(File 98-633) was approved by the Board of 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 17, 2000 Finance and Labor Committee Meeting 

Supervisors to complete the construction of the City 
Hall seismic retrofit and building improvement 
project. As shown in Attachment 1, including the 
last $22,477,779 General Fund supplemental 
appropriation, the City has approved toral 
appropriations of $293,869,668 for the 
reconstruction of City Hall. If the proposed 
supplemental appropriation of $10,791,665 is 
approved, the total costs for the City Hall seismic, 
relocation and improvement project will total 
04,661.333, excluding furniture, fixtures and 
equipment. Of the $304,661,333 total cost, 
$22,574,779 (the $22,177,779 supplemental plus ' 
$97,000 in previous funding) of these funds, or 7 1 
percent, were from the City's General Fund. 

Mr. George Wong of the City Attorney's Office 
reports that the first proposed supplemental 
appropriation (File 00-0843) is intended to pay 
additional compensation for additional work that 
the General Contractor, Huber, Hunt and Nichols, 
Inc., and subcontractors claim to have performed. 
Mr. Wong advises that a detailed budget is not 

ulable for the $10,791,665 because the proposed 
supplemental appropriation represents an 
aggregate sum of the negotiated requests for 
additional compensation made by the General 
Contractor and various subcontractors on the City 
Hall Project in order to settle their claim. Mr. Wong 
advises that the specific details will be discussed by 
the City Architect with the Board of Supervisors in 
closed session at the May 17. 2000 Finance and 
Labor Committee Meeting. 

3. According to Mr. Tony Irons, the City Architect 
ami Project Manager for the City Hall Project, most 
of the costs included in the proposed supplemental 
appropriation, as well as the $6,936,652 in interest 
earnings on the bonds used to pay for these costs, 
occurred after the last supplemental appropriation 
approved by the Board of Supervisors in April 
of 1998. Mr. Irons reports that the additional work 
and expenditures resulted from change orders that 
occurred during the final construction phases of 
City Hall, and although Mr. Irons realized that 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 17, 2000 Finance and Labor Committee Meeting 



there would be additional costs to complete City 
Hall, Mr. Irons reports that he did not notify the 
Board of Supervisors regarding the need for such 
additional funds because he did not know the full 
extent of such additional costs. City Hall was 
completed and opened in January of 1999. Mr. 
Irons advises that this supplemental appropriation 
request is being submitted now, over 16 months 
after the opening of City Hall, because all of the 
claims have now been submitted and have been 
negotiated to a justifiable amount and the City has 
now received notification regarding the FEMA. 
grant monies. 

4. Ms. Tina Olson of DPW reports that the source of 
funds for the proposed $10,791,665 supplemental 
appropriation includes $3,547,725 of interest 
earnings from the 1995 City Hall Proposition A. 
General Obligation Bonds of $63.59 million for 
building improvements to City Hall. To date, these 
1995 General Obligation Bonds have earned 
$8,440,427 in interest, of which $4,892,702 has 
already been appropriated to the City Hall Project. 
The proposed supplemental ordinance would 
appropriate the remaining $3,547,725 of interest 
earnings from these Bonds. 

In addition to the $3,547,725 in City Hall 
Proposition A Bond Fund Interest, the proposed 
supplemental would appropriate $3,388,927 of 
interest earnings from the 1990 Earthquake Safety 
Program Bond, Phase 2 (ESP2), which initially 
authorized $332.4 million in General Obligation 
Bonds for repair and upgrades for earthquake 
damaged buildings throughout the City. To date, a 
total of $85,288,458 of bond proceeds and 
$12,000,000 of interest earnings have been 
allocated from the ESP2 Bonds for the City Hall 
Project. Ms. Olson advises that there is a current 
balance of $6,633,603 of interest earnings in the 
ESP2 account, such that if the proposed 
supplemental appropriation of $3,388,927 of 
interest earnings is approved, a remaining interest 
earnings balance of $3,244,676 will result. M.- 
Olson advises that the remaining interest earnings 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 17, 2000 Finance and Labor Committee Meeting 

are programmed for use on the San Francisco 
General Hospital seismic strengthening project. 

Ms. Olson further advises that a total of $3,855,013 
would be appropriated from the remaining project 
funds available from the ESP2 Bond proceeds. 
According to Ms. Olson, although there are three 
projects (i.e., (1) San Francisco General Hospital, 
(2) the Opera House and (3) St. Marys Garage) 
that still need to be completed with these ESP2 
Bond proceeds, this appropriation of $3,855,013 for 
City Hall will deplete all remaining unallocated 
funds in this ESP2 Bond proceeds account. 

5. Mr. Irons reports that the City applied for $48 
million from FEMA's Hazard Mitigation Grant 
Program, through the State Office of Emergency 
Services (OES), on January 8, 1998 for additional 
reimbursement of earthquake damage repairs, 
accessibility improvements, hazardous material 
abatement, historic preservation, electrical, 
telecommunications and other code compliance 
improvement funds for the City Hall Project. Mr. 
Irons advisee that durum the Fall of 1999, FEMA. 
through OES. notified the City of a total grant 
award of $12 million for qualifying historic 
preservation funds related to the seismic 
renovation of City Hall. Under the proposed 
supplemental appropriation. $12 million of such 
FEMA grant funds would be appropnated to the 
Hall Project and then reappropriated to the 
- General Fund for specific use for other, as yet 
undesignated, seismic retrofit projects in the City. 

6. According to Mr. Ben Rosenfield of the Mayor's 
Office, $12 million is being proposed to be set aside 
in the General Fund for specific use for other 
mic retrofit projects because (1) of the unmet 
need to seismically retrofit buildings in the City, 
and (2) the $12 million grant fund represents one- 
time monies that should be allocated for one-time 
projects. Although Mr. Rosenfield could not identify 
the specific projects that would be completed with 
the subject $12 million, or provide detailed budgets 
for such seismic retrofit projects. Mr. Rosenfield 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 17, 2000 Finance and Labor Committee Meeting 

provided Attachment 2, which identifies 11 projects 
which have a high priority need for seismic retrofit, 
with a total estimated project cost of $66,271,535. 
Mr. Rosenfield advises that the Capital 
Improvements Advisory Committee (CIAC) would 
need to review the use of the $12 million for capital 
projects in greater detail, before any decisions are 
made to proceed with a specific project. Therefore, 
the Budget Analyst recommends that this $12 
million of funds be reserved, pending identification 
of the specific projects to be funded, review by the 
CIAC, and detailed budgetary data for the 
expenditure of such funds. 

7. Mr. Irons advises that, if the proposed 
supplemental appropriations are approved, "the 
City can close the books on the City Hall Project" 
and there will be no further expenditures required 
for the completion of the City Hall Project. 

Recommendations: 1. Approval of the proposed ordinance (Item 8, File 

00-0844) to inappropriate $12,000,000 to (a) the 
City's General Fund Reserve or to (b) undesignated 
seismic projects in the City's General Fund is a 
policy matter for the Board of Supervisors. If 
approved for undesignated seismic projects in the 
City's General Fund, amend the proposed 
ordinance to place the entire $12,000,000 on 
reserve pending identification of the specific 
projects, review by the CIAC, and detailed 
budgetary data for the expenditure of such funds. 

2. Because expenditure details will be provided to 
the Finance and Labor Committee in closed 
session, requesting expenditure approval of 
$10,791,665, Item 9, File 00-0843, is a policy 
matter for the Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Attachment 11 



Summary of Sources and Expenditures/Encumbrances 
City Hall Project 



Sources: 

F EMA S105.509.825 

ESP2 Bonds 97.288,453 

Prop A Bonds 68.496,606 

General Fund Old Appropriation 97,000 

General Fund (1998 Supplemental) 22.477,779 

Total Sources to Date (May 10, 2000) 5293,869,668 

This Supplemental Request: 

ESP2 Bonds 7,243,939 

Prop A Bonds 3,547,725 

FEMA Grant 12,000,000 

Subtotal this Supplemental Request 522,791 ,664 

Return to General Fund (S12,000,000) 

Grand Total Sources 5304,661 ,332 

Total Expenditures/Encumbrances thru May 10. 2000: 

ESP2 - Seismic Upgrade Project 167,093.373 

ESP2 - City Hall Relocation Costs 35,801 .905 

Prcpo A - City Hall Improvement Project 90,974,385 

Total Expenditures S293.869.668 

This Supplemental Request: 

ESP2 - Seismic Upgrade Project 19,243.939 

Propo A - City Hall Improvement Project 3.5^7,725 

Subtotal this Supplemental Request 522,791 .664 

Return to General Fund (S12.000.000) 

I Grand Total Expenditures/Encumbrances $304. 661.3321 



SENT BY: 5-11- ; 10 :03AM 

City and County of San Francisco 



Attachment 2 





Willie Lewis Brown. Jr., Mayor 
Marfc A. Pnmeau, Architect, ALA, Director 



415 252 0461;* 2/ 2 

(415) 554-4830 

FAX (415) 554-7800 

httpoVwww.sWpw.com 



Department of Public Works 

Finance and Budget Dlvtsion 

Financial Management and Administration 

City Hall, Room 348 

1 Dr. Carlton B. Goocilert Race 

San Francisco. CA 94102-4645 



May 9, 2000 



Memorandum 



Ben Rosenueid 



To: 



From: Douglas Legg hAlmd 

Re: Seismic Capital Projects 

DPW has done preliminary programming for a number of seismic projects in the City which 
could be substantially funded should as much as $12 million be available. Detailed project 
descriptions that were in the candidate list for the HSP 3 program are attached. This list is not 
inclusive of all City seismic needs, but represents high priority projects which aie furthest along 
in the planning process. 



■'■ , J-.' ,- y=-—^:=-.~ -■--; "/:-■ '--' ^ 


— Bepafirpenfc/i : i 


Seismic, 

"-Pfitiag- 


"zlE'9taafe^ 
- f otaJ'DeheJL-. 


' j: =^-fe5^Jipg>gnl^E^^ : ^ 


McLaren Lodge |Rec/Park 


4 59,556.587 


Conservatory of Flowers [Rec/Park 


3 


3,500,0001 
4.665.594| 


Richmond Branch Library 


Library 


4 


GG Valley Branch Library 


Library 


3 5.375.580I 


Manna Branch Library 


Library 4 4.968.195! 


Noe Valiey Branch Library 


Library 4 6.322.964I 


Hunter's Point Youth Center 


Mayor's OCD 3 6.359,7791 


SE Child & Family Therapy 


Public Health 4 1,793,982' 


SF General Hospital 


Puolic Health 4/3 19.350,000 


240 Van Ness 


Admin Services | 4 2,000.000 


Art Commission Gallery 


An Commission | 4 1.878.354 


Total 


| i 566,271,535 



Please call me at 554-4806 if you have any questions 



7MPPOV/NQ THS QUAUT/ OF UFm IN SAN FRANCISCO' W« mrw o»o/c»f»(S inannaumla commUmd to (••m.w*. cumtomvr 
icrjicc aix3 ccntinuous ImoroverrvH n sarirerzr.iq >»0 lh« community 
'•^-Horner Z-uvkh Tam-MOtx Continuous Imprcvenz^i 



Memo to Finance and Labor Committee 

May 17, 2000 Finance and Labor Committee Meeting 

Item 10 - File 00-0667 



Department: 



Item: 



Description: 



Department of Real Estate (DRE) 
Department of Public Works (DPW) 

Resolution approving and authorizing an Agreement with 
the State of California for the acquisition of right of ways 
to certain portions of Route 101 located generally between 
Market Street and Turk Street (the former Central 
Freeway): adopting findings that such acquisition is 
consistent with the City's General Plan and eight priority 
policies of the City Planning Code Section 101.1; and 
placing the property under the Department of Public 
Works' jurisdiction. 

The Central Freeway (U.S. 101) was constructed in 1959 
to connect Franklin. Gough, Oak. and Fell Streets with 
Interstate 80 for direct freeway access to the East Bay 
and with Route 101 South for direct freeway access to the 
South Bay and the Peninsula. On October 17. 1989. the 
Loma Prieta Earthquake caused extensive structural 
damage to the Central Freeway which necessitated 
demolition of the freeway's upper deck and its Franklin 
and Gough Street rani]- As a result. Section 7lM was 
added to the California Street- and Highways Code in 
order to: 



declare that those portion- of the Route 101 right-of- 
way between Market and Turk Streets are no longer a 
state highway; 

require Caltrans to remove the Central Freeway 
structure and convey to the City those parcels of land 
which are no longer required for right-of-way 
purpe- 

require the City to use the proceeds from any sale of 
the right-of-way parcels of land for the purpose of 
designing, constructing, developing, and maintaining 
the Octavia Street Project 1 and thereafter for 
transportation and related purposes: and 
require the city to accept all liabilities associated with 
the property to be conveyed. 



1 The Octavia Street Project consists of the improvement of Octavia Street between Market. Fell, 
and Oak Streets as a ground level boulevard to expedite the passage of vehicles which would 
formerly have used the Central Freeway 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 17, 2000 Finance and Labor Committee Meeting 



The proposed Agreement with the State of California 
Department of Transportation (Caltrans) would convey to 
the City, for no consideration, 23 parcels of land in "as in" 
condition (Parcel Nos. A to V shown in Attachment I) 
comprising the former Central Freeway between Market 
and Turk Streets. The total land area to be conveyed 
from Caltrans to the City would be approximately 387,602 
square feet (net of public street areas) or 8.9 acres. 

Under the proposed Agreement, Caltrans would 
relinquish 13 parcels of land, Parcels A through L ("Phase 
I property"), within 30 days following approval of the 
transfer by the California Transportation Commission in 
June of 2000. Caltrans would relinquish the remaining 
ten parcels of land, Parcels M through V ("Phase II 
property"), within 30 days following complete demolition 
by Caltrans of the remaining Central Freeway structures 
on that property. Mr. Ken Chopping of DRE advises that 
the City prefers that such demolition happen as soon as 
possible, but that the schedule will be determined by 
Caltrans. 

Comments: 1. LTnder the proposed Agreement, the City would hold 

the State harmless from all losses, damages, suits, 
penalties, costs, expenses, or liabilities connected with the 
actions of the City or its agents during any inspection of 
the subject property prior to its conveyance to the City. 
However, the State would indemnify the City against 
other claims filed before the transfer of title to the City. 
Mr. Chopping, advises that DRE does not plan any pre- 
conveyance activity on the proposed land, including soil 
sampling or drilling, that could result in a claim against 
the City. According to Mr. Donnell Choy of the City 
Attorney's Office, these Agreement provisions should not 
affect the City if neither the City nor its agents enter the 
property prior to its conveyance to the City. Mr. Choy 
advises that Caltrans has not yet approved the proposed 
Agreement. 

2. According to Mr. Chopping, an environmental site 
assessment of the subject parcels of land has been 
conducted which did not find any visual evidence of 
hazardous materials storage. A search of government 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 17, 2000 Finance and Labor Committee Meeting 



databases did not disclose any identified hazardous 
materials or chemical releases in any nearby properties 
which could impact the subject parcels of land. However, 
two former service stations were located either on or next 
to the subject property and no public records were found 
for underground storage tank removals. DRE has 
requested Caltrans demolition records which should 
disclose whether underground storage tanks were 
removed. Caltrans reports it will take two weeks to 
receive the records. 

Mr. Chopping stated that neither of the two potential 
underground storage tank locations has shown signs of 
contamination. One is on a site that will be retained by 
the State nf California and any storage tank removal 
would be the responsibility of the State. The flow of 
ground u way from the sites the City is acquiring 

and the risk of contamination is minimal. The other 
potential storage tank location is a parcel of land that 
would be used by the City for the Octavia Street Project. 
During construction of the Octavia Street Project the 
at paving will be removed and the site will be 
ivated. It' a storage tank is discovered during the 
excavation it would be removed. 

- shown in Attachment II. provided by DRE. 
Caltrans currently has 24 leases in effect with private 
companies, individuals, and public agencies for parking 
lot operations located on the subject parcels of land. The 
24 leases generate annual rental revenue of $927,787 to 
the State. Fourteen of these 24 leases relate to Phase I 
property and generate an annual rental revenue of 
$771,247 (see Attachment III provided by DRE). The 
remaining ten leases relate to Phase II property and 
generate an annual rental revenue of $156,540 (see 
Attachment IV provided by DRE). 

4. Under the proposed Agreement, when the City 
acquires Phase I and Phase II property, the State would 
assign the related leases (as listed in Attachments III and 
IV) to the City and thereafter the rental revenue from 
those leases would accrue to the City. On the Phase I and 
Phase II property conveyance dates. Caltrans would 
transfer to the City the full security deposits for each of 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 17, 2000 Finance and Labor Committee Meeting 



the relevant lessees. According to Mr. Chopping, 22 of the 
24 existing leases are short term leases with 30 to 90 day 
termination rights. Mr. Chopping states that Caltrans, in 
consideration of the City's proposed acquisition, will not 
grant extensions for any of these 22 leases and will only 
allow them to continue as month-to-month tenancies at 
the current monthly rents. According to Mr. Chopping, 
Caltrans staff state that all leases were secured by public 
auction, and that while the more recent leases are at 
market rates, the older leases may be below market rates. 
Demand is reported to be strong for these leases, 
according to Mr. Chopping. 

5. Two of the 24 leases are long term with no termination 
rights prior to the expiration of the long term leases: 

• Lease No. SF- 10 1-02 with Alfred Giannim for 3,320 
square feet of land located on McAllister Street just 
west of Franklin Street, at a rent of approximately 
$0.20 per square foot per month, for a total rent of 
$667 per month ($8,004 per year). This lease has a 
50 year term from September 1, 1982 to August 31. 
2032 2 . Mr. Chopping states that at the time of the 
lease execution, Mr. Giannini was planning to 
develop a car wash on this site and needed a long 
term lease. The rent is subject to Consumer Price 
Index adjustments at five-yearly intervals. The next 
adjustment will be on September 1, 2002; and 

• Lease No. SF-101-03, 04, 53, and 54 with the San 
Francisco Unified School District (SFUSD) for 38,720 
square feet of contiguous land located between 
McAllister and Ash Streets, at a rent of 
approximately $0,106 per square foot per month, for a 
total rent of $4,091 per month ($49,087 per year) 3 . 
The leased property is adjacent to SFUSD office 
buildings. This lease has a 50 year term from 



2 Two other leases with Mr. Gianmm (Lease Nos. SF-101-65 and SF-101-66) are for parcels of land 
contiguous with the land leased by Mr. Giannini under Lease No. SF- 10 1-02. Mr. Giannini pays 
approximately $0.36 per square foot per month, for a total rent of SI, 200 per month ($14,400 per 
year) for the 3,340 square feet under Lease No. SF-101-65, and approximately $0.48 per square foot 
per month, for a total rent of $550 per month ($6,600 per year) for the 1,140 square feet under Lease 
No. SF-101-66. These three leases cover Parcel D. 

3 No rent is payable for 6,800 square feet until January 1. 2026, at which time rent will commence 
at the same rental rate charged for the remaining 31.920 square feet under Lease No. SF-101-03, 04, 
53, 54 which covers Parcel E, Parcel E-st, and a very small piece of Parcel F. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 17, 2000 Finance and Labor Committee Meeting 



•January 1. L976 to December 31. 2025, with four 
options to renew at ten years each until December 31, 
2065. According to Mr. Chopping, the original lease 
was with the State Bar of California Association 
which wanted to build offices on adjacent land. The 
long term parking lease, and the use of the entire 
-pan for parking, was required by the City as a 
condition of the building permit. The State Bar of 
California Association subsequently assigned the 
lease to the SFUSD on December 17, 1998. The rent 
is subject to Consumer Price Index adjustments at 
five-yearly intervals. According to Mr. Chopping, the 
next adjustment is expected on January 1, 2001. 

6. According to Mr. Chopping, the appraised value of 
Phase I property is approximately $18,200,000, and fb) 
Phase II property is approximately $10,700,000, for (c) an 
appraised value of approximately $28,900,000 for all 23 
subject parcels of Land. Mr. Chopping states that this 
appraised value is based on land area and market value, 
but has not been adjusted for the two long term leases 

ribed in Comment No. 5 above or for potential long 
term land uses (such as affordable housing). Mr. 
Chopping states that such adjustments could materially 
reduce the value of the parcel-. 

rding to Mr. Chopping, the City would use any 
proceeds from the 24 I the purpose of designing. 

constructing, developing, and maintaining the Octavia 
Street Project until the City's share of the costs of that 
project are paid in full or funded from other sources, in 

rdance with Senate Bill No. 798. 

7. According to Mr. Patrick Rivera of DPW. DPW will 

work with the Planning Department, the Redevelopment 
acy, and the Mayor's Office of Economic Development 
to develop a long term plan for the 23 parcels of land. Mr. 
Rivera advises that the four departments have not yet 
held any formal discussions about the subject property. 

- According to Mr. Chopping and Mr. Rivera, the only 
ongoing costs to the City of acquiring the subject property 
would be the additional DRE management duties for lease 
administration. These lease administration costs would 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 17, 2000 Finance and Labor Committee Meeting 



be absorbed in DRE's current budget, according to Mr. 
Chopping. 



Recommendation: Approve the proposed resolution. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Attachment I 



EXHIBIT A 

CENTRAL FREEWAY RELOCATION PROJECT 

Parcels to be Received from Caltrans 





No. 


Blk/Lot 


Location 


Project 
Area (s.f.) * 


Net of 
R/W*» 


A 


761/27 


SE cor. Turk & Gough Streets to Elm Street 


18,310 


18,310 


B 


761/23ptn 


Elm Street to Golden Gate Avenue 


13,802 


13,802 


C 


768/13 


SW Franklin & Golden Gate to Redwood St. 


16,500 


16,500 


D 


768/73 


N. side of McAllister to Redwood Street 


10,937 


10,937 


E 


785/30ptn 


South side of McAllister Street 


22,384 


22,384 


E-st 


785/33 


Portion of Ash Street east of Gough Street 


6,010 


6,010 


F 


785/29ptn 


N. Side of Fulton, NE cor at Gough 


18,439 


18,439 


G 


792/28ptn 


NE cor. Gough & Fulton Streets 


13,790 


13,790 


H 


793/3 6ptn 


NW cor. Gough & Grove Streets 


11,269 


11,269 


I 


808/36 


West side of Gough bet. Grove & Ivy Streets 


16,240 


16,240 


J 


808/39 


E. side of Octavia bet. Ivy & Hayes Streets 


17,398 


17,398 


K 


817/30 


E. side of Octavia bet. Haves & Linden Streets 


20,569 


12,499 


L 


817/33 


E. side of Octavia bet. Linden & Fell Streets 


12.649 


4.579 






Phase I Subtotal: 


198,297 


182,157 


M 


832/26 


E. side of Octavia bet. Fell & Hickory Streets 


9,900 


1,803 ! 


N 


832/25 


E. side of Octavia bet. Hickory & Oak Streets 


9,900 


1,803 1 





83 1/24 


W. side of Octavia bet Fell & Hickorv Streets 


37,427 


37,4 


P 


831/23 


W. side of Octavia bet Hickory & Oak Streets 


49,500 


49,500 


Q 


839/29 


NW corner of Oak & Octavia Streets 


4,650 


4,65 : 


R 


838/35 


E. side of Octavia bet. Oak & Lily Streets 


10,500 


2,790 


S 


838/34 


E. side of Octavia bet. Lily & Page Streets 


10,680 


2,970 1 


T 


853/22 


E. side of Octavia bet. Paee & Rose Streets 


13,212 


5,502 


U 


853/21 


E. side of Octavia bet. Rose &. Haieht Streets 


13,200 


5,490 1 


V 


855/11 


E. side of Octavia, Haight St. to Market Street 


30,336 


12 : 






Phase II Subtotal! 189,305 


124,179 






Total 


"387,602 


**306,336 



♦Total Project Area to be received from Caltrans net of public street areas. Above square foot 

approximate. 
**Net land area, net of Octavia Street Project 

H:\wp\DPW\53 10Calt\CtparA2Vnet.doc 



Attachment II 
Page 1 of 2 

CENTRAL FREEWAY RELOCATION PROJECT 

SCHEDULE 1-INDEX 





SUMMARY OF LEASES 










Security 


Lease No. 


Lessee 


Monthly Rent 


Deposit 


SF-101-01 


Car Park Management 


$4,200.00 


$4,700.00 


SF-101-02 


Alfred Giannini 


667.00 





SF-101-03,4,53,54 S.F. Unified School District 


4,090.60 


1,450.00 


SF-101-05 


San Francisco Opera 


7,750.00 


8,250.00 


SF-101-06 


San Francisco Opera 


5,400.00 


5,900.00 


SF-101-07 


Safe Park Corporation 


4,900.00 


5,400.00 


SF-101-08 


Safe Park Corporation 


7,200.00 


16,700.00 


SF-101-09 


San Francisco Symphony 


6,400.00 


6,400.00 


SF-101-10 


Safe Park Corporation 


4,700.00 


5,200.00 


SF-101-11 


Safe Park Corporation 


3,000.00 


3,500.00 


SF-101-12 


Park Bay Inc. 


1,400.00 


1,900.00 


SF-101-13 


B & A Towing 


500.00 


1,000.00 


SF-101-14 


Safe Park Corporation 


550.00 


1,050.00 


SF-101-15 


Safe Park Corporation 


1,100.00 


1,600.00 


SF-101-16 


Car Park Management 


1,350.00 


1,850.00 


SF-101-17 


Gethsemane Church 


1,300.00 


1,800.00 


SF-101-18 


Car Park Management 


1,400.00 


1,900.00 


SF-101-19 


Car Park Management 


1,045.00 


1,545.00 


SF-101-20 


U Haul Co. of California 


2,500.00 


3,000.00 


SF-101-21 


U Haul Co. of California 


1,900.00 


2,400.00 


SF-101-64 


Federal Auto Parks, Inc. 


12,113.00 


12,613.00 


SF-101-65 


Alfred Giannini 


1,200.00 


1,700.00 


SF-101-66 


Alfred Giannini 


550.00 


1,050.00 


SF-101-68 


S. F. Redevelop. Agency 


2,100.00 


2,600.00 




Total Monthly Rent ! 


$77,315.60 






Total Security Deposit 




$93,508.00 




Total Annual Rent $927,787.20 





Notes on Leases-see page 2 



II Rcccnt\Schllndcx.doc 



Attachment II 
Page 2 of 2 



Of the 24 leases in effect from Caltrans, all but 2 are short term lease, with 30 to 90 day 
termination rights. For those leases, 15 have expired recently or will expire by the end 
of June, 3 will expire later in 2000 and 4 expire in 2001 . None of those leases have any 
renewal options and in consideration of the City's acquisition, Caltrans will not grant any 
renewal of those leases, allowing them la continue on a month to month status at 
current rents. 

Two leases are long term leases with no termination rights, as shown below: 

Lease No. 2 with Giannini extends to 8-31-2032. Monthly rent is to be adjusted to CPI 
at 5 year intervals that began 9-1-82. The next adjustment date is 9-1-02. 

The San Francisco Unified School District has a lease covenng lease parcels 03, 04, 53 
and 54. That lease extends to 12-31-2025 with a renewal option extending to 
1 2-31-2065. No rent is due for Parcel 53 for the initial 50 years. For Parcel 53, 
effective 1-1-2026 the monthly rent will commence at the same rental rate as charged 
for Parcels 3, 4 and 54. Monthly rents are to be adjusted to CPI changes at 5 year 
intervals on January 1 beginning 1-1-81. The next adjustment date is apparently 
January 1 , 2001 . This lease is for parking and construction of a building. Lessee shall 
pay all taxes assessed on any improvements. Note: this lease was originally with the 
State Bar Association and was assigned to the School District in December 1998. The 
School District owns office buildings on adjacent parcels facing Franklin Street. 



H RecentSchlIndex.doc Real Estate 



Attachment III 



EXHIBIT D OF MOU 
CENTRAL FREEWAY RELOCATION PROJECT 

SCHEDULE 1-INDEX 





SUMMARY OF LEASES IN PHASE I RELINQUISHMENT 






Security 


Lease No. 


Lessee Monthly Rent 


Deposit 


SF-101-O1 


Car Park Management $4,200.00 


$4,700.00 


SF-1-1-02 


Alfred Giannini • 667.00 





SF-1 01 -03,4,53,54 S.F.Unified School District 4,090.60 


1,450.00 


SF-101-05 


San Francisco Opera 7,750.00 


8,250.00 


SF-1 01 -06 


San Francisco Opera 5,400.00 


5,900.00 


SF-1 01 -07 


Safe Park Corporation 4,900.00 


5,400.00 


SF-1 01 -08 


Safe Park Corporation 7,200.00 


16,700.00 


SF-1 01 -09 


San Francisco Symphony 6,400.00 


6,400.00 


SF-101-10 


Safe Park Corporation 4,700.00 


5,200.00 


SF-1 01 -11 


Safe Park Corporation 3,000.00 


3,500.00 


SF-1 01 -64 


Federal Auto Parks, Inc. 1 2, 1 1 3.00 


12,613.00 


SF-101-65 


Alfred Giannini 1,200.00 


1,700.00 


SF-101-66 


Alfred Giannini 550.00 


1,050.00 


SF-1 01 -68 


S. F. Redevelop. Agency 2,100.00 
Total Monthly Rent $64,270.60 


2,600.00 




Total Security Deposit 


$75,463.00 




Total Annual Rent $771 ,247.20 





H:\WP\DPW\5 3 1 0C ALTvSch 1 IndexPhase 1 . doc 



Attachment IV 



CENTRAL FREEWAY RELOCATION PROJECT 
SCHEDULE 1-INDEX 





SUMMARY OF LEASES IN PHASE 2 RELINQUISHMENT 








Security 


Lease No. 


Lessee 


Monthly Rent 


Deposit 


SF-101-12 


Park Bay Inc. 


1,400.00 


1,900.00 


SF-101-13 


B & A Towing 


500.00 


1,000.00 


SF-101-14 


Safe Park Corporation 


550.00 


1,050.00 


SF-101-15 


Safe Park Corporation 


1,100.00 


1,600.00 


SF-101-16 


Car Park Management 


1,350.00 


1,850.00 


SF-101-17 


Gethsemane Church 


1,300.00 


1,800.00 


SF-101-18 


Car Park Management 


1.400.00 


1.900.00 


SF-101-19 


Car Park Management 


1,045.00 


1,545.00 


SF-101-20 


U Haul Co. of California 


2.500.00 


3.000.00 


SF-101-21 


U Haul Co. of California 


1,900.00 


2,400.00 




Total Monthly Rent 


S1 3.045.00 






Total Security Deposit 




518,045.00 




Total Annual Rent 


$156,540.00 





H RcccmSchllnde\PH2doc 



Memo to Finance Committee and Labor Committee 
May 17, 2000 Finance and Labor Committee Meeting 

Item 11 - File 00-0784 



Department: 



Item: 



Location: 



Department of Human Services (DHS) 
Department of Building Inspection (DBI) 

Resolution authorizing an amendment to lease real 
property at 1650 Mission Street for the Department of 
Human Services and the Department of Building 
Inspection. 

The proposed amended lease is for the rental of a portion of 
the second floor and third floor located at 1650 Mission 
Street. 



Purpose of Lease: 



Lessor: 



To (a) temporarily relocate DBI staff while its current 
location, 1660 Mission Street, is being renovated as well as 
alleviate overcrowded conditions for DBI staff at 1660 
Mission Street, and (b) to reduce overcrowded conditions for 
DHS staff at various locations in the City. 

G & I Mission, L.L.C. 1 



Lessee: 



No. ofSq. Ft. and 
Cost Per Month: 



Annual Cost: 



City and County of San Francisco, acting by and through 
the Department of Human Services and the Department of 
Building Inspection. 

16,564 square feet at a monthly rental rate of $71,920 
(approximately $4.34 per square foot) in Year One of the 
subject lease. 

$1,038,040 in Year One of the proposed lease, including 
$863,040 in rent and $175,000 in property improvements, 
and $921,516 in Year Five of the proposed lease. 



Annual 

Rent Increases: 



Utilities and: 
Janitorial Services: 



Approximately $1.00 per square foot each year of the 
proposed lease contract for 14,619 square feet on the 3 rd 
floor which amounts to $14,619 annually. 

Utilities and Janitorial Services will be provided by the 
landlord. 



1 Mr. Steve Legrutto of DRE has noted that the building at 1650 Mission Street was sold on 
April 28, 2000. The owner in the proposed resolution, 1650 Mission Street, sold the property 
to G & I Mission, L.L.C. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance Committee and Labor Committee 
May 17, 2000 Finance and Labor Committee Meeting 

Term of Lease: Five Years (September 1, 2000 to August 31, 2005). 



Right of Renewal: 
Source of Funds: 
Description: 



Comments: 



None 

Proposed budgets of DBI and DHS for FY 2000 - 2001. 

The proposed resolution would authorize a new five-year 
lease of 16,564 square feet of office space, 3,000 square feet 
for DBI and 13,564 square feet for DHS, on available 
portions of the second and third floors of the facility at 1650 
Mission Street from the new owner G & I Mission, L.L.C. 
The new proposed leased space would allow DBI personnel 
to relocate during building construction at its current 
location at 1660 Mission Street and to alleviate 
overcrowding at L660 Mission Street. The new leased space 
for DHS would reduce overcrowded shared space conditions 
at various locations in the City. 

sording to Mr. Steve Legnitto of DRE, the proposed 
lease would begin after the improvements, made at the 
landlord's expense, are completed. Renovations are 
expected to be completed between July 1, 2000 and 

mber 1 2000. 

2. According to Mr. Legnitto, of DRE. the City has leased 
the subject property at 1650 Mission Street for DBI and 
DHS since May of 1996. The lease was amended in 
September of 1997 to provide additional space for both DBI 
and DHS on the 3 rd floor of 1650 Mission Street. The 
existing lease agreement for leased space expires on July 
31, 2003. DHS currently occupies 50,005 square feet of 
space and DBI currently occupies 7,907 square feet at an 
average i 1 40 per square foot for a total cost of 

$81,077 per month at 1650 Mission Street. The proposed 
lease of an additional 16,564 square feet at a monthly rate 
of approximately $71,910 would cost $4.34 per square foot 
per month for the new leased space. 

rding to Mr. Legnitto of DRE. the additional proposed 
leased space of 16.564 square feet at a monthly cost of 
approximately $71,910 would increase the average cost per 
square foot for all existing and proposed lease space at 1650 
Mission Street from $1.40 to $2.05. The cost for the existing 
lease and the proposed lease are as follows: 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance Committee and Labor Committee 
May 17, 2000 Finance and Labor Committee Meeting 

Existing Proposed Total 

Rent/Mo. $81,077 $71,910 $152,987 

Sq. Ft 57,912 16,564 74,476 

Average 

Monthly Rent $1.40 $4.34 $2.05 

per square foot 

The proposed lease at 1650 Mission Street is for 16,564 
square feet of space at an average monthly rate of 
approximately $4.34, which is nearly $3 per square foot 
more than the current average of $1.40 for rent, as noted 
above. According to Mr. Legnitto of DRE, real estate 
leasing costs have risen dramatically in the past year, and 
since available space is becoming more difficult to locate 
and becoming more expensive, DRE decided to exercise the 
option in its contract and lease additional space at 1650 
Mission Street. 

3. According to Ms. Amy Lee of DBI. if DBI relocates its 
staff from its current location at 1660 Mission Street under 
the proposed amended lease, DBI would use the vacated 
space to alleviate overcrowding and relocate staff during 
building renovations at 1660 Mission Street. The DBI 
divisions who would relocate under this proposed lease 
include a staff of between 25 and 35 DBI Inspectors, Plan 
Checkers and Administrative Staff. Ms. Lee notes that DBI 
plans to move staff back to its 1660 Mission Street location 
after the building construction is complete in 18 to 22 
months. According to Mr. Steven Young of DBI. DBI staff is 
increasing and space limitations may require that some 
staff remain at the 1650 Mission Street location after 
renovation work at 1660 Mission Street is completed. 
According to Mr. Legnitto of DRE, the average current rent 
paid for DBI staff is approximately $0.57 per square foot 
per month. There would be no realized cost savings from 
moving DBI staff. 

4. There are four divisions within DHS that would relocate 
to 1650 Mission Street under the proposed lease: The 
Division of Housing and Homeless Programs, In Home 
Support Services, DHS Support Services, and Personnel 
Operations and Payroll Services. The proposed lease would 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance Committee and Labor Committee 
May 17, 2000 Finance and Labor Committee Meeting 

allow approximately 67 staff from these divisions to move 
from overcrowded conditions or shared space arrangements 
al various locations in the City to space dedicated for their 
use. According to Mr. Legnitto of DRE, the average current 
rent paid for DHS staff is approximately $1.50 per square 
foot per month. There would be no realized cost savings 
from moving DHS staff. 

5 According to Ms. Amy Lee of DBI, DBI has proposed in 
its budget for FY 2000 - 2001 approximately $175,000 for 
improvements including office equipment, cubicles, 
computer equipment and computer networking equipment, 
office furniture and furniture installation, 

telecommunications wiring and equipment, additional 
electrical wiring and other improvements necessary for the 
department's operation at L650 Mission Street. 

According to Ms. Sally Kipper of DHS, DHS does not plan 
on spending funds for improvements or renovations for 
their proposed lease space. 

6. The lease agreement states that the City would pay a 
prorata .-hare of the real I xes and operating cost 
increases based upon the base year 2000 for the additional 
area. According to Mr. Legnitto of DRE. th: ndard 

through language and there would be no increase in 
ival estate taxes or operati 'luring the first year of 

the proposed lease agreement until the baseline costs are 
blished. Further. Mr. Legnitto states that since the 
building was sold to a new owner in April of 2000 any 
increased costs due to increased real estate taxes would be 
minimal. 

7. According to Mr. Legnitto of DRE. the property at 1650 
Mission was sold on April 2.S. 2000. The landlord identified 
in the proposed resolution. 1650 Mission Street Associates, 
sold the property to G & I Mission. L.L .< ' 

8. Mr. Steve Legnitto of DRE has stated that the proposed 
lease represents fair market rental value. 

Recommendation: Approval of the proposed resolution is a policy matter for 
the Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance Committee 

May 17, 2000 Finance Committee Meeting 



Item 12 - File 00-0730 

Department: 

Item: 



Amount: 
Source of Funds: 

Description: 



Department of Human Services 

Hearing to consider the release of reserved funds in the 
total amount of $607,519 to: a) provide $154,349 to be 
used for program design efforts and a site search for a 
Resource Center serving homeless people and people at 
risk for being homeless in the North Mission District; and 
b) $453,170 to be carried forward to the budget for FY 
2000 - 2001 to be used for necessary capital 
improvements and renovations once the site is secure. 

$607,519 

General Fund: Previously appropriated and reserved 
funds from the DHS Budget. 

During the FY 1999 - 2000 budget review process the 
Board of Supervisors placed $607,519 on reserve that the 
Department of Human Services (DHS) had allocated for 
new Resource Centers. The Board of Supervisors reserved 
these funds to ensure that the North Mission District 
community was involved in the process of program 
development and site selection for the new Resource 
Center. 

Beginning in June of 1999 the Department of Human 
Services, Division of Housing and Homeless Programs, in 
partnership with the Department of Public Health and 
the Mayor's Office convened a community planning 
process with Mission District residents, merchants, 
service providers, potential consumers and 
representatives from neighborhood organizations to 
develop the concept of a Mission Neighborhood Resource 
Center to serve homeless people and people at risk of 
homelessness in the North Mission District community. 
According to Ms. Kate Durham of DHS, the group 
developed plans for a Resource Center that would offer 
drop-m services; health services, including substance 
abuse and harm reduction services; vocational 
employment and education services; case management 
and advocacy services; housing stabilization services: and 
community building activities. DHS proposed funding is 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance Committee 

May 17, 2000 Finance Committee Meeting 

intended to support these core services while 
collaborations with other service providers, including the 
Department of Public Health, would create access to a 
broader array of services citywide. 

Budget: DHS would utilize the $607,519 in reserved funds for the 

following 19 for a contract with the M; 

Neighborhood Health Center to begin preliminary 
discussions with potential landlords for leased space and 
continuing program development with community groups; 
(b) $100,000 to reserve rental space until the community 
acceptance process is completed; and (c) $453,170 to be 
earned forward to the budget for FY 2000 - 2001 for 
capital improvements and renovations which may be 
needed for the proposed Resource Center. 

Comment: 1 Ms. Kate Durham of DHS advises that community 

organizations would continue to be involved in the site 
selection process and program development. DHS will 
follow the requirements of Proposition I 1 once a potential 
site has been selected and is acceptable to the community. 

2. On February 23. 2000 DHS issued a Request for 
Proposals to identify agencies or organizations interested 
in providing a North Mission District center for homeless 
people and people at risk of becoming homeless. The 
Request for Proposals were sent out to prospective 
contractors from Department of Human Services 
contractor lists, posted on the DHS website, and sent to 
Mission District community organizations. The RFP 

-ed in the San Francisco Independent, Bay 
i Reporter. SF Business Woman. Asian Week, Sun 
Reporter. SF Bay View, and El Bohemia News. The 
Mission Neighborhood Health Center was the sole 
applicant that responded by March 22. 2000 to the RFP. 
The Mission Neighborhood Health Center proposes 
utilizing a collaborative effort of groups including Mission 
Mental Health. Mission Council on Substance Abuse, the 
SRO Collaborative and Quan Yin that would provide 
services at the Resource Center. In order to expedite the 
process of locating a site, the Department of Human 



1 Proposition I, or the Citizens Right to Know Act of 1998. is a formal hearing process giving citizens 
notice of pending City government projects paid with tax dollars and permitting public comment on 
the proposed project. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance Committee 

May 17, 2000 Finance Committee Meeting 






Services proposes entering into a six month (June 1, 2000 
through November 30, 2000) planning contract with the 
Mission Neighborhood Health Center. Once an acceptable 
and appropriate site for the Resource Center has been 
identified, the contract with the Mission Neighborhood 
Health Center would be expanded and they would become 
manager of the day to day operations of the Resource 
Center. The proposed six month operating budget for the 
Mission Neighborhood Health Center is as follows: 



Salaries 


$27,800 


Fringe Benefits 


6.394 


Subtotal 


$34,194 


Computers and 




Computer Equipment 2 


$2,550 


Community Outreach Facilitator 


7,500 


Indirect Cost 


6,800 


Operating Expenses 


3,305 



Subtotal $20,155 

Total $54,349 

3. According to Ms. Durham, DHS would like to find 
available space in the North Mission District area near 
Mission Street and 16 th Street. This area of the Mission 
District has a high concentration of homelessness, 
homeless street deaths, drug use, mental illness and 
emergency room admissions. 

4. Ms. Durham notes that the Resource Center would 
provide drop-in services that are not currently available 
in the North Mission District Area. Drop-in services 
include restrooms, showers, snacks, laundry facilities, 
storage lockers for personal possessions, peer counseling, 
community activities and support groups. Additional 
services would include substance abuse and harm 
reduction services; vocational, employment and 
educational services; and case management and advocacy 
services designed to engage people with a system of 
support, reduce individual and community health risks 



2 According to Ms. Durham of DHS, the computer equipment would become the property of the 
Mission Neighborhood Resource Center 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance Committee 

May 17, 2000 Finance Committee Meeting 



and offer opportunities to assist individuals in stabilizing 
their lives. The Center would offer important on site 
services and create stronger linkages for low-income 
people in the North Mission in gaining access to housing, 
medical care, mental health services and substance abuse 
services city-wide. 

5 M>. Durham states that DHS proposes that the Center 
will be open and provide services for approximately 56 to 
72 hours per week and serve between 200 and 
persons daily 

According to Ms Durham. $750,000 for annual 
operating expenses has been included in the proposed 
DHS budget for FY 2000 - 2001. DHS would need 
approximately 8.000 square feet of leased space for the 
proposed project and would prefer a location that has 
visible street access. The proposed operating budget for 
the Mission Neighborhood Resource Center is as folio* 

$35» 
Fringe Benefits 82.073 

Subtotal $438,913 

Operating Expenses 

Indirect Costs 

Salaries 700 

Fringe Benefits 1 1,421 

Audit and Evaluation 4,679 

Subtotal $81,800 

Total 000 

The City's General Fund is the source of funds for the 
proposed operating expenses shown above. As noted 
previously, in addition to the proposed FY 2000 - 2001 
operating costs summarized above. DHS requests a carry 
forward to FY 2000 - 2001 of $453,170 in reserved funds 
for capital improvements. 

7. Ms. Durham notes that once a site is selected and the 
program is implemented, the Mission Neighborhood 
Health Center, would develop a Neighborhood Advisory 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance Committee 

May 17, 2000 Finance Committee Meeting 

Committee, comprised of residents, merchants, and 
representatives of neighborhood organizations. This group 
would meet regularly and provide ongoing input into the 
implementation of the Center and monitor the impact the 
Center is having on the quality of life in the Mission 
District neighborhood. 

8. The Budget Analyst recommends releasing $54,349 for 
the contract awarded by RFP to the Mission 
Neighborhood Health Center. Further, the Budget 
Analyst proposes reserving $553,170, $100,000 for rent 
for a site which has not yet been selected and $453,170 for 
capital improvements and renovations which have not yet 
been identified. 

Recommendations: 1. In accordance with Comment- No. 8 above, release 

$54,349 for the contract with Mission Neighborhood 
Health Center. 

2. Continue to reserve $553,170 including (a) $100,000 for 
rent pending the selection of a site for the Resoxirce 
Center and (b) $453,170 for unidentified renovations and 
capital improvements. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 17, 2000 Finance and Labor Committee Meeting 



Item 13 - File 00-0785 

Department: 

Item: 



Description: 



Comments: 



Department of Real Estate (DRE) 

Resolution approving and authorizing the exercise of an 
option to acquire real property located ai 525 Golden Gate 
Avenue from the State of California for the nominal price of 
$2.00; adopting findings that the conveyance is consistent 
with the City's General Plan and eight priority policies of 
Planning Code Section 101. 1; and ratifying prior acts. 

The proposed resolution would authorize the City to 
ise the City's option to purchase 21.780 square feet of 
State-owned land, located at 525 Golden Gate Avenue 
between Polk Street and Van Ness Avenue. The City 
entered into an Option and Purchase and Sale Agreement 
with the State for the subject property on August 25, 1997. 
The Option Agreement provided that the City had the 
option to purchase the subject property from the State for 
the purchase pine of S2.00, subject to Board of Supervisors 
approval. 

Approval of the proposed resolution would authorize the 
exercise of the City's option to purchase the real property at 
Men ( rate Avenue for the purchase price of $2.00. 

1 According to Mr. Steve Legmtto of DRE. 525 Golden Gate 
Avenue contain- a vacant nine -story building, consisting of 
176,000 square feet, which was formerly used by the Si 

of California for the offices of the State Uninsured 
Employers' Fund. Mr. Legnnt. that the existing 

structure, which was damaged during the Loma Pneta 
earthquake in 1989, is not habitable and would need to be 
demolished. The Department of Public Works (DPW) has 
estimated that total costs for demolition of the building and 
reconstruction of the surface, including excavation, filling 
the excavated hole, and paving the surface, would be 
approximately $3,000,000. According to DPW. 
determination of funding sources and appropriation of 
funds for the proposed demolition of the vacant building at 
an estimated cost of $3,000,000 would be subject to Board 
of Supervisors approval. According to Mr. Legmtto. DRE 
projects that the cost of demolition would be less than the 
estimated value of the land without the building. Mr. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



ia 



Memo to Finance and Labor Committee 

May 17, 2000 Finance and Labor Committee Meeting 



Legnitto states that the vacant property, exclusive of the 
nine-story building, consists of 21,780 square feet, and that 
the fair market value would be greater than $300 per 
square foot, or approximately $6,534,000 ($300 times 
21,780). 

2. According to Mr. Anthony Irons, the City Architect, the 
environmental review of potential uses of the property, 
required by the California Environmental Quality Act 
(CEQA), is currently in progress, but no report has yet been 
issued. Mr. Irons states that the City is looking at various 
uses for the subject property, including use as an office 
building for City departments and agencies. Mr. Irons 
advises that no specific potential use of the building has yet 
been determined, and that determination of such use would 
be a policy matter for the Board of Supervisors. 

3. According to Mr. Irons, the State has not placed 
restrictions on the development or resale of the subject 
property. Therefore, the purchase agreement would not 
prohibit the City from leaving the subject property vacant 
or from selling the property at fair market value in the 
future and retaining all proceeds from such a sale. 



Recommendation: Approve the proposed resolution. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 17, 2000 Finance and Labor Committee Meeting 

Item 14 - File 00-0786 

Department: Mayor's Office of Public Finance 

Mayor's Office of Housing 

Item: Resolution authorizing and directing the sale of not to exceed 

$20,000,000 of City and County of San Francisco General 
Obligation Bonds (.Affordable Housing), Series 2000D (the 
"Series 2000D Bonds"). 

Description: In November of 1996, the voters of San Francisco approved 

Proposition A. which authorized the City to issue 
$100,000,000 in General Obligation Bonds to: (1) finance the 
development of rental housi: lable to low income 

households and (2) to provide down payment assistance to 
low- and moderate-income first-time homebuyers (the 
Affordable Housing Bonds"). 

In October 1997, the Board of Supervisors established 
authority for the Affordable Housing and Homeownership 
Bond Program (File 97-97-56) (the "Program") and approved 
regulations developed by the Mayor's Office of Housing for 
the Program (File 97-97-56.1). According to Mr. Joe La Torre 
of the Mayor's Office of Housing, under the Program, the City 
will issue General Obligation Bonds from time to time up to 
the point that the total aggregate principal amount of bonds 
issued is $100,000,000. According to Mi La Torre and 
pursuant to the Program, 85 percent of the funds will be used 
for affordable rental housing development and 15 percent 
will be used for down paymen - ace loans for first-time 

homebuyers. In October 1997 the Board of Supervisors also 
ablished the general terms and procedures for the 
issuance of .Affordable Housing Bonds (File 170-97-10) and 
authorized the issuance and sale of the first series of bonds 
under the Program (File 170-97-10.1). The first series of 
Affordable Housing Bonds, $20,000,000 of City and County of 
San Francisco Taxable General Obligation Bonds (Affordable 
Housing). Series 1998A. was issued on February 18, 1998. 
The second seri 00.000 of City and County of San 

Francisco Taxable General Obligation Bonds (Affordable 
Housing). Series 1999A. •■■ .-d on June 10, 1999. 

(Attachment I to this report, provided by the Mayor's Office 
of Housing, list the projects receiving funds from the 
Affordable Housing and Home Ownership Bond Program 
during Fiscal Year 1999-2000.) 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 17, 2000 Finance and Labor Committee Meeting 

This proposed resolution would authorize the sale of the 
third series of Affordable Housing Bonds, the Series 2000D 
Bonds, m an amount not to exceed $20,000,000. The 
proposed resolution would also approve the form and terms of 
documents and official notices related to the bond sale, and 
authorize City officials to take variouj actions necessary to 
carry out the sale of the bonds. 

The general provisions of the sale of the Series 2000D Bonds 
would be as follows: 

• The sale of the bonds is tentatively scheduled to be held 
on June 21, 2000. 

• The bonds would be sold at an interest rate not to exceed 
12 percent per year and would have a final maturity not 
later than 2025. 

• An official statement describing the bonds to be issued is 
included with the proposed resolution for approval by the 
Board of Supervisors. The official statement would be 
available to all bidders for the bonds. 

• Bonds will be awarded to the bidder whose bid represents 
the lowest interest cost to the City. 

• The City Treasurer may appoint fiscal agents or financial 
institutions to distribute bond principal and interest 
payments. 

• The bonds are subject to Article VIII of Chapter 2 of the 
City's Administrative Code requiring accountability 
reports for general obligation bonds. 



Comments: 1. As stated above, under the proposed resolution the 

annual interest rate for the $20,000,000 of Series 2000D 
Bonds cannot exceed 12 percent. However, Ms. Sarah 
Hollenbeck of the Mayor's Office of Public Finance reports 
that if the bonds were sold at this time, such bonds would be 
sold with an estimated overall effective interest rate of 5.84 
percent over the anticipated 20-year life of the bonds. 

2. According to Ms. Hollenbeck. the proposed sale of the 
Series 2000D Bonds m the amount of $20,000,000 would 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

Mav 17, 2000 Finance and Labor Committee Meeting 



result in total interest costs of $14,676,856, and total debt 
service of approximately $34,676,856 ($20,000,000 in 
principal plus $14,676,856 in interest costs) over the 
anticipated 20-year life of the bonds. The average debt 
service payment per year would be approximately 
S1.733.S42." 

3. According to Ms. Ann Carey of the Controller's Office, the 
proposed sale of the Series 2000D Bonds in the amount of 
$20,000,000 would result in an increase in the Property Tax 
rate of approximately $0.00256 per $100 of assessed value. 
At that rate, the owner of a single-family residence assessed 

100,000 would pay $10.07 in additional Property Taxes 
annually to meet the debt service requirements of these 
bonds. 

4. Ms. Hollenbeck states that the cost of selling the 
$20,000,000 of Series 2000D Bonds, including fees for private 
bond counsel, financial advisors, financial printing and the 
services of the Mayor's Office of Public Finance, Mayor's 
Office of Housing, City Attorney, and Controller's Office are 
expected to be approximately $200,000, or approximately one 
percent of the total value of the $20,000,000 in bonds issued. 

5. According to Ms. Hollenbeck. the City's General Obligation 
bonding capacity, which is equal to three percent of the I 

—essed property value, is $2,114,446,916 based on a net 
sed valuation of $70,481,563,870 for Fiscal Year 1999- 
2000. Ms. Hollenbeck states that, as of May 1, 2000, the City 
had outstanding $902,700,000 aggregate principal amount of 
General Obligation Bonds, not including the subject Bonds of 
this resolution, which is equal to 1.28 percent of the net 
assessed valuation. Therefore. Ms. Hollenbeck advises that 
the City's current available General Obligation bonding 
capacity is approximately SI. 21 1.746.916. The proposed sale 
of $20,000,000 of Series 2000D Bonds would reduce the City's 
bonding capacity from S 1.21 1.746.916 to approximately 
$1,191,746,916. However. Ms Hollenbeck advises that the 
City's bonding capacity varies from time to time as bonds are 
repaid and new bonds issued, and as the City's assessed 
valuation changes. 

6. According to Mr. La Torre, the subject bonds are unlike 
other City General Obligation bonds because, under the 
Program, the City would not directly expend the proceeds 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 17, 2000 Finance and Labor Committee Meeting 

from these bonds but would, in most cases, act as a lender of 
the monies to other parties. Under Federal tax law, the 
lending of monies to private entities is regarded as a private 
activity and, in order for private activity bonds to be tax- 
exempt, certain additional governmental approvals are 
required. 

Mr. La Torre advises that under certain circumstances, the 
portion of the Affordable Housing bonds used to finance the 
development of affordable rental housing may qualify as tax 
exempt General Obligation bonds. According to Mr. La Torre, 
in order to qualify as tax exempt bonds, the City must either: 
(1) make loans to qualified 501(c)(3) non-profit corporations 
which do not require allocation from the California Debt 
Limit Allocation Committee through its competitive process, 
or (2) draft the agreements with for-profit corporations as 
grants instead of as loans. 

According to Mr. La Torre, the Mayor's Office of Housing has 
identified projects for which funds have been committed in 
previous rounds that can now be financed with the proceeds 
of tax-exempt bonds. (See Attachment II. provided by the 
Mayor's Office, for a list of these projects). The current 
issuance will provide funds for these projects, permitting 
taxable proceeds of the previous issuance to be made 
available for down-payment assistance loans and new 
projects that require taxable bond financing. Mr. La Torre 
advises that by issuing this series as tax-exempt bonds, the 
City will realize an interest savings of approximated 
$7,844,000 over the 20-year debt service period, compared to 
a taxable issuance. 

8. All future expenditure appropriations of the bond 
proceeds, including appropriations to the Affordable Housing 
Bond Housing Fund, would be subject to separate 
appropriation approval by the Mayor and the Board of 
Supervisors. 

Recommendation: Approval of the proposed resolution is a policy matter for the 
Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Attachment I 




MAYOR'S OFFICE OF HOUSING 

CITY AND COUNTY OF SAN FRANCISCO 



WILLIE LEWIS BROWN, 

VLaRCLA ROS: 
DIRECT 



. :ooo 

To: 

From: 

Subject: 



Members of the Board of Supervisors 

Daryi Higashi, Acting Director j)-*T 

Allocation oi 1999 Affordable Housing and Home Ownership Bond Program 
Funds 



The following tables are extracted from the .Annual Report of the Affordable Housing and Heme 
Ownership Bond Program, dated as of May 1 . 2000, a copy of which has been placed on file 
the Clerk of the Board. Please refer to the .Annual Report for more detailed information about 
the developments and homebuvers as: Bond funds. 



Rental Commitments 



Date 
Approved 



Housing 
Proeram 



Amount 



L'nits or 
Beds 



165 Eishth St. 



6/29/99lSuDoortive 



53.21- 






.: Ashbury Free Clinics ireasure 
Is. Transitional Housing 






Is to Plowshares Treasure Island 
Transitional Housing 



len House Treasure [sla 

Transitional Housing 

Treasure Island Family Housing 






Supp> 












S91.66! 



SuDC> ' 






•'SuDooruve 



S12S 



ects Phase 2 



n 



SI. 12 



'-L- 



fhird St. 



549.613 



I TI Projects Phase 3 (predeveloomenn 
Geneva. Cur.er reconstruction i 

S2 T Howard (^redevelopment) 

F-encship House - acquisition. 
predevelopn 



OlSuDDortiv! 



SI 00.0001 






5/16/0C 



S309.-1941 









Sth, "Howard Family Housing 

IBroadwav Parcel 11 fpredevelopi 












TOTALS: 






First Time Homebuver Loans: 

Period 



Loans 



Fundins 



:^c; L:ur.eu : 



Arr.l 12. 1999 and May 1.: 









ts txpectea r 









Total Activirv since April 12, 1999: 






25 VAN NESS AVENUE. SUITE 600 • SAN FRANCISCO. CALIFORNIA • - • 



Attachment II 

FAX TRANSMISSION MEMORANDUM 

MA YOR 'S OFFICE OF HOUSING ' ' " 



NUMB ER OF PAGES (LNCLLD ING COVER SHEET): 1 

IF YOU DO NOT RECEIVE ALL PAGES, PLEASE CALL (415) 252-3188 

May 1 1 , 2CC0 

TO: Ermlie Neuman 252-0461 

FROM: Joe LaTocc fh^_^- 

SUB JE CT: Projects Anticipated for Tax-Exempt Financing 



Protects with outstanding funding commitments: 

Presentation Semor Community 31,161,518 

John King Senior Community 53,655,524 

Projects with pending applications: 

Geneva/Carter Family Housing S425.CGQ 

Yerba Bucna Island Supportive Housing S2,3 15,000 

S27 Howard Senior Housing S309.494 

Friendship House S6,633,S00 

S^VHoward Family Housing 53,000,000 

421 Turk Family Housing SI, 100,000 

Supportive Housing Notice of Funding Availability: 52. 197.2-3 

Total Identified Tax-Exempt Potential: 521.347,639 



25 VAN NE5S AVSNUE, SUITS 6C0 ■ SAN FRANCISCO. CA W.02 • (•*-.;) 252-3177 ■ 



Memo to Finance and Labor Committee 

May 17, 2000 Finance and Labor Committee Meeting 

Item 15 - File 00-0788 



Department: 



Item: 



Department of Real Estate (DRE) 
Recreation and Park Department (RPD) 

Resolution approving and authorizing the acquisition of 
real property in the North Mission District generally 
described as 45 Hoff Street (Lot 19 m Assessor's Block 
3569) for open space purposes and adopting findings 
pursuant to City Planning Code Section 101.1. 



Amount: 



Source of Funds: 



Property Purchase 
Closing C< 

Total 

of California General Fund Grant 
Open Space Fund 
Total 



$1,350,000 

15.000 

S 1.365,000 



SI. 083, 500 

281.500 

$1,365,000 



Description: 



The RPD is proposing to purchase a vacant paved lot, 
consisting of 10,103.74 square feet, located at 45 Hoff 
it, between 16 th and 17 th Street in the North Mission 
District. The subject property would be used for a mini- 
park, including a children's play lot. 

According to Mr Ken Chopping of DRE. the purchase price 
would be $1,500,000. of which the seller, Parking 
Properties, a (General Partnership, would donate $150,000 
of the purchase price to the City, for a net purchase price of 
30,000. Mr Chopping advises that the actual amount 
of funds that the City would be required to place in escrow- 
would be $1,350,000. Mr. Chopping states that closing 
for the purchase would be approximately $15,000. for 
a total cost of purchase of $1,365,000. 

Funds for the purchase of the subject property are available 

as follow-: 



The Board of Supervisors approved the acceptance of a 
$1,083,500 State grant on November 15. 1999, 
nated for the creation of a North Mission Open 
Space (File 99-1863). 

Funds in the amount of $281,500 have been 
appropriated in the Open Space Fund for this purpose. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 17, 2000 Finance and Labor Committee Meeting 



Approval of the proposed resolution would authorize the 
acquisition of the property at 45 Hoff Street for a cost of 
$1,365,000, including the net purchase price of $1,350,000 
plus closing costs of $15,000. 

Comments: 1- According to Mr. Chopping, the net purchase price of 

$1,350,000, which is equal to an actual purchase price of 
$1,500,000 less the seller's donation to the City of $150,000, 
represents fair market value. The actual purchase price of 
$1,500,000 equals $148.46 per square foot and the net 
purchase price of $1,350,000 equals $133.61 per square 
foot. 

2. Mr. Chopping reports that a private developer, Eamonn 
Herlihy, offered the owner of the subject property, Parking 
Properties, $1,500,000 for the purchase of the vacant lot to 
construct residential condominium units. Mr. Chopping 
states that Mr. Herlihy withdrew his offer, stating that the 
seller had not informed him that the City was interested in 
purchasing the site to be used as a mini-park. 

3. According to Mr. Tom Anderson of DPW, Camp, Dresser, 
and McKee, Inc., a private consultant, conducted a Phase I 
environmental site assessment of the subject property. Mr. 
Anderson states that a Phase I assessment includes a 
literature search of public agencies which may have 
knowledge of possible environmental hazards on the subject 
property or in the surrounding area that would affect the 
subject property. A report issued by Camp, Dresser, and 
McKee, Inc. states that "no recognizable environmental 
conditions were identified at the property. However, the 
use of the property from 1914 to 1948 is unknown, and the 
subsurface conditions of the property are also unknown". 
According to Mr. Anderson, if the City determines that it is 
in the City's interest to perform an analysis of the subsoil to 
identify environmental hazards, the analysis would take 
approximately 4 to 6 weeks and would include (a) obtaining 
4 to 5 core soil samples, (b) conducting a laboratory analysis 
of these soil samples for priority pollutants, which include 
pesticides, petroleums, semi-volatile aromatics and heavy- 
metals, and (c) a written report summarizing the findings 
of the laboratory analysis. The cost of such analysis would 
be approximately $4,000 to $5,000. Mr. Anderson advises 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 17, 2000 Finance and Labor Committee Meeting 

that, based on the Phase I assessment, DPW would not 
expect extensive or deep soil contamination by potentially 
hazardous materials at the subject property. However, 
without performing subsoil analysis, DPW is unable to 
provide an estimate of the type or cost of mitigation of 
possible environmental hazards on the subject property. 

1 In a letter from Mr Gerald Green of the Planning 
Department to DRE, Mr Green Btates that "acquisition of 
the property would increase the amount of public open 
space m the City and is consistent with the intent of the 
General Plan". 

5 According to Mr Hob McDonald of RPD, the specific 
plans for the proposed mini-park and children's play lot to 
be developed on the subject property would be determined 
through a community hearing process. Mr. McDonald 
states thai RPD ha- allocated $1, 000, 000 in Open Space 
Funds to purchase and develop a North Mission Open 
Space property. Of the .Sl.000,000 allocated for North 
Mission Open Space, $500,000 in Open Space Funds have 
been included m the FY J000-2001 RPD budget and 
$500,000 in Open Space Funds were allocated in prior 
year- budgets tor purchase and development of a North 
Mission Open Space property and not expended ($200,000 
in FY 1996-97, $200,000 in FY 1997-98, and $100,000 in FY 

Ing $500,000) of the $1,000,000 in available 
funds. $281,500 would be expended for the purchase of the 
subject property, and $718,500 would remain for the design 
and development costs of the proposed mini-park. Mr. 
McDonald states that actual design and development costs 
have not yet been determined, pending completion of the 
community hearing process. 

6 According to Mr. Chopping, the assessed valuation of the 
subject property is $520,833 and property tax on the subject 
property to be paid to the City in FY 1999-2000 is $5912.04. 
Once the City acquires the subject property, such I 
would no longer be paid to the City. 

Recommendation: Approval of the proposed resolution is a policy matter for 
the Board of Supervise 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 17, 2000 Finance and Labor Committee Meeting 



Item 16 - File 00-0799 

Department: 

Item: 



Services to be 
Performed: 

Description: 



Department of Human Services 

Resolution approving the Controller's certification that 
security services can continue to be practically performed 
at the Department of Human Services by a private 
contractor at a lower cost than if the work were performed 
by City and County employees. 

Security services at Department of Human Services 
facilities 

Charter Section 10.104 provides that the City may 
contract with private firms for services which had been 
performed by City employees if the Controller certifies, 
and the Board of Supervisors concurs, that such services 
can in fact be performed by private firms at a lower cost 
than similar work services performed by City employees. 

The Controller has determined that contracting for the 
security services for FY 2000-2001 would result in 
estimated savings as follows: 



Citv-Operated Service Costs 

Salaries 
Fringe Benefits 
Total 

Contractual Services Cost 

Estimated Savings 



Lowest 


Highest 


Salarv 


Salarv 


Step 


Step 


$2,150,232 


$2,547,261 


678.436 


740.849 


$2,828,668 


$3,288,110 


2.194.869 


2.194.869 


S633.799 


$1,093,241 



Comments: 



1. Ms. Esther Reyes of DHS reports that security services 
were first certified, as required under Proposition J 
(Charter Section 10.104), in 1976, has been certified for 
each contract renewal and have been continuously 
provided by an outside contractor since that time. 

2. The subject security services would be provided at 
eleven DHS facilities, including 170 Otis. 1235 Mission. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 17, 2000 Finance and Labor Committee Meeting 

1440 Harrison, 1428 Bush, 1570 Mission, 225 Valencia, 
1800 Oakdale, 160 South Van Ness, 3801 Third Street. 50 
Van Ness and at San Francisco General Hospital. The 
beginning date for security services would be based on the 
available starting date for the new contractor 
Guardsmark. The contract is for an approximate two-year 
period either from June 1, 2000 to June 30, 2002, or from 
July I, 2000 to June 30, 2002. 

3. According to Mr. Ben Kawamura of the Purchasing 
Department, the original contract with McCoy's Patrol 
Services was for the period September 1, 1995 through 
August 31, 1997. The contracl was extended and has been 
continued on a month to month renewal basis since March 
of 2000 when the contract expired. 

1 During the first two weeks of February of 2000, 
announcements for a Request for Proposals were faxed 
and/or mailed to prospective contractors from the Human 
Rights Commission certified li ■11 as those listed 

under "Security Guard & Patrol Service" in the San 
Francisco phone book. The RFP was advertised through 
the California Newspaper Service Bureau in the San 
Francisco Independent. El Bohemia News, Sun Reporter. 
the Bayview, Bay Area Reporter, SF Business Woman, 
Bay Guardian and the Asian Weekly, as well as on the 
Department of Human Servio te and Purch.: 

Bid and Opportunities newsletter. Ei<zht quotations were 
received from qualified contractors on March 13, 2000. 
DHS reports that Guardsmark was selected because it 
scored highest based on meeting the needs of the 
department and its target population. The following table 
lists the contractors and LBEAVBE/MBE status of the 
contractor: 

Contractor Quotation MBEAVBE status 

King Security No Quote LBEAVBE 

F& J Security Patrol "48 

Hal Mar Jac, dba McCoy $2,276,887 LBE/MBE 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 17, 2000 Finance and Labor Committee Meeting 

Contractor Quotation MBE/WBE status 

Guardsmark $2,337,475! 

Comprehensive Security $2,538,381 

Arrakis $2,820,636 

North Star Security $3,097,640 

Elack Bear Security $3,222,307 LBE/WBE 

5. The Contractual Services Cost used for the purpose of 
this analysis is based on Guardsmark's projected actual 
costs for FY 2000-2001 of $2,194,869 (See Attachment III 
A and III B). 

6. Ms. Reyes has noted that proposed contract providers 
were asked to consider, as part of their proposal, the 
potential implementation of a Living Wage Ordinance 
during the contract term. The average wage for guards 
working for McCoy Patrol Services, the current contractor 
for DHS guard services, is approximately $6.40 per hour. 
The average wage for guards working under the proposed 
contract for Guardsmark, the new contractor for DHS 
guard services, is approximately $9.75 per hour and 
would include paid training, medical benefits, life 
insurance, a 401(k) plan, paid vacation and tuition 
reimbursement. 

7. A memorandum from DHS explaining why 
Guardsmark was selected for the contract is shown as 
Attachment I to this report. 

8. The Controller's supplemental questionnaire with the 
Department's responses is shown as Attachment II to this 
report. 

9. A memorandum from DHS explaining why 
Guardmarks' RFP quote was $142,606 higher than the 
Controller's estimated cost of guard services is shown as 
Attachment III A and III B to this report. 

Recommendation: Approve the proposed resolution. 



1 This amount is S142.606 more than the Controller's analysis of the cost of guard services for DHS. 
See Attachment III A and B from DHS for an explanation of the increased cost. In all cases, the 
quotes include a base security contract and a training component for DHS clients. Proposition -I is 
based only on a core security contract, therefore, the amount shown differs from the contract amount 
used for the Proposition J comparison. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



City and County of San Francisco 




Attachment I 

Department of Human Servii 

Office of Contract Management 



MEMORAND1 M 



TO: 

FROM 
DATE: 
SUBJECT: 



Bryce Sutherland. Budget Analyst 
Esther Reyes, Contracts Manager 
May 8, 2000 

< . I \ RDSMARK: SELECTION OF CONTRACTOR 

FOR THE PROVISION OF DEPARTMFM AJ 
SECURITY SERVICES 



The purpose of the contract with Guardsmark will be to provide a safe environment for 
the Department's clients, employees and members of the public. Services will consist of 
providing assistance and information; maintaining order; deterring intrusion, disputes, 
theft and vandalism; and responding to emergencies. 

Background and Service Description 

Guardsmark is a 37-year old, nationally recognized security services firm, employing 
14.000 people, 460 in San Francisco alone. Guardsmark was awarded International 
Organization for Standardization (ISO) 9001 certification in July, making them the first 
national security service organization to achieve registration for the quality management 
system of its corporate headquarters in the United States. They have had extensive 
experience in the field and a 97° client retention rate, providing services to the State of 
California SF Civic Center Complex. 1650 Mission (which houses DHS staff), the 
Judicial Council of California, and the San Francisco Museum of Modem Art, as well as 
banks, schools, hospitals and industrial sites. 

Guardsmark has a rigorous employment screening, investigation and validation process to 
ensure a high-quality, professional workforce. Their emphasis on employment 
development and learning, including a career development program and an educational 
tuition assistance refund program, has contributed to an impressive 75" o employee 
retention rate. They employ the latest technology in training and testing, utilizing audio- 
visual and CD-ROM learning modules. They have also developed an electronic database 
to track incidents and unusual circumstances, daily electronic reports submitted by 
security officers for shift-by-shift input, and provide 24-hour dispatch, and pagers and 
cellular phones for accessibility and timeliness of communications. 

Guardsmark' s start-up plan will consist of a risk assessment review of each departmental 
site, conducted by Guardsmark's in-house Technical Services Division; a Mission 
Partnership Statement, a comprehensive manual providing specific duty instructions, 
emergency procedures and how services to non- or limited-English speaking clients and 



170 Otis Street, 8th Floor 



San Francisco, California 94120 



(415)557-5580 / FAX (415)431 



Attachment I 
Page 2 of 2 



members of the public will be implemented; and a comprehensive, 30-day transition plan 
to ensure a smooth transition process. As part of this plan and per the San Francisco 
Municipal Code, all employees who have been employed by the previous contractor for 
the preceding eight months or longer at the sites covered by the contract, will be retained 
for a 90 day transition employment period. The Contractor will make good faith efforts 
to retain as many existing employees as possible, regardless of tenure. The starting wage 
for security officers will range from S9.50 to S10 per hour with paid training, medical 
benefits, life insurance, a 401(k) plan, paid vacation and tuition reimbursement. 

Source Selection 

The Department issued a publicly advertised Request for Proposals in February, 2000. 
Eight proposals were received. Five of the highest scoring proposers were invited for 
presentations. Guardsmark received the top scores on both the proposal and presentation 
components, reviewed by a panel consisting of representatives from DHS, Purchasing, 
and the San Francisco Police Department. The scores were based upon Guardsmark's 
extensive background; organizational infrastructure and capacity; and detailed, well 
conceived action plans for deployment of personnel and equipment, as well as for public 
contact/ access control and 24-hour emergency response. Staff screening, training and 
retention methods were considered to be exemplary. The proposal and presentation were 
judged to be the most credible, comprehensive and innovative of all submitted for the 
panel's review. 

Please contact me at 557-5864 if you have further questions. Thank you. 



Attachment II 



CHARTER 10.104.15 (PROPOSITION J) QUESTION N UR1 

DEPARTMENT: Human Services 

CONTRACT SERVICES: Security Services for Departmental Facilities 

CONTRACT PERIOD: 6/1/00- 6/30/02 

( 1 ) Who performed the activity/service prior to contracting out 
This service has always been contracted out since 1976. 

< 2 i How many City employees were laid off as a result of contracting out 
None. 

(3) Explain the disposition of employees if they were not laid off. 
N/A. 

i -X | What percentage of Citv employees' time is spent of services to be contract out? 

N/A 

(5) How long have the services been contracted out° Is this likely to be a one-time or an ongoing 
request for contracting out? 

The services have been contracted out for 24 years (since 1976). This will be an ongoing 
request. 

(6) What was the first fiscal year for a Proposition J certification? Has it been certified for each 
subsequent year" 1 

The first fiscal year for a Prop. J certification was 1976. It has been certified every contract 
year or when there has been a contractor change. 

(7) How will the services meet the goals of your MBE/WBE plan' 

The contract was bid out with the opportunity for HRC preference points for certified 
MBE/LBE/WBEs. Contractor selection was conducted by a panel including DHS. Purchaser 
and SFPD representatives in compliance with all City requirements. A diverse staff of 
minority employees has historically been employed in this service area. The contractor's 
proposed wages and extensive benefits package (paid training, medical benefits, life 
insurance, a 401(k) plan, paid vacation and tuition reimbursement) will give these employees 
benefits and opportunities that had not previously been available. 

(8) Does the proposed contract require that the contractor provide health insurance for its 
employees. Even if not required, are health benefits provided? 

Yes. the contract requires provision of employee health insurance. 

(9) Does the proposed contractor provide health benefits to employees with spouses If so. are 
the same benefits provided to employees with domestic partners? If not. how does the 
proposed contractor comply with the Domestic Partners ordinance 

The contractor is in compliance with the 12B Ordinance. 

Department Representative: Esther Reyes 
557-5864' 



City and County of San Francisco 



Attachment III A 
Department of Human Services 




April 27, 2000 

Mr. Joe Mantranga 

Controller 

City and County of San Francisco 

City Hall, Room 306 

1 Dr. Carlton B. Goodlett Place 

San Francisco, C A 94102 

PvE: Prop. J Approval for Contract Services for 00/01 

Security Services for Department of Human Services Facilities 

Dear Joe: 

Pursuant to our discussion, this memo clarifies that the budget labeled as Appendix B, pg. 
4 is the actual 00/01 security services contract budget. As part of this contract, the 
Contractor, Guardsmark, will also provide an ancillary training/employment program for 
the Department's CalWORKs and PAJ£S special needs clients consisting of six 
Department-subsidized, full-time parking attendant slots per year. This ancillary program 
is intended to provide career opportunities and training for low-income special needs 
welfare recipients to assist them in making the transition from welfare to work. The 
clients will receive Contractor assistance in the employment process consisting of 
ongoing guidance, pre-work assignment training and on-the-job training. 

Please call me at 557-5864 if you require further information. Thank you for your 
assistance. 

Sincerely, 

Esther Reyes 
Contracts Manager 



170 Otis Street, 8th Floor 



San Francisco, California 94120 



(415)557-5580 / FAX (415) 431-9270 



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Memo to Finance and Labor Committee 

May 17, 2000 Finance and Labor Committee Meeting 






Item 17 - File 00-0847 
Department: 

Item: 

Location: 
Purpose of Lease: 

Lessor: 

Lessee: 

No. of Sq. Ft. and 
Cost Per Month: 



Annual Cost: 



Increase (Decrease) 
in Cost: 



Term of Lease: 



Police Department (SFPD) 
Department of Real Estate (DRE) 

Resolution authorizing the lease of real property at 
1101 Capp Street for the San Francisco Police 
Department. 

1101 Capp Street 

Space for the Senior Escort Patrol, Crime Prevention 
Services (SEP) 

Brosnan, Michael and Elizabeth 
Brosnan, John and Joan 

City and County of San Francisco 



Approximately 1,925 square feet at $1.70 per square 
foot per month, for a total of $3,272.50 per month 
($39,270 annually). Annual CPI adjustments to the 
rent will be made at the beginning of each new lease 
year. 

$39,270 per year for the first year, subject to annual 
CPI adjustments in years two through five. 



Ms. Rochelle Frazier of SFPD reports that since July 
1, 1998 the monthly rent for the approximate 1,925 
square feet has remained the same, with no increases, 
at $1,842.93 per month (approximately $0.96 per 
square foot per month, or $22,115.16 per year). Under 
the proposed lease, rent would increase by $1,429.57 
per month, from the previous rent of $1,842.93 to 
$3,272.50 per month ($39,270 annually), a 77. 6 
percent increase. 

Five years, commencing retroactively to April 1. 2000 
and terminating on March 31. 2005 (See Comment N7>. 
2). The lessee would have two opportunities to cancel 
the lease by providing notice of intent to vacate 90 
days prior to the start of years tour or live of the lease 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 17, 2000 Finance and Labor Committee Meeting 



Right of Renewal: 

Utilities and Janitor 
Provided by Lessor: 



No option for renewal 



The City would be responsible for metered gas and 
electricity: the landlord would pay for garbage and 
water service. 



Description: 



Tenant Improvements: 
Comments: 



The proposed resolution would retroactively approve a 
five-year lease to provide approximately 1,925 square 
feet of space for the Police Departments Senior Escort 
Patrol for a monthly rent of $3,272.50 ($3!' 
annually) 

According t>> Ms. Frazier, the SEP has occupied the 
premises at lini Capp Street since July 1, 1991, and 
has leased the property on a month-to-month basis 
since the original five-year lease ended on June 30, 
L996. According to Ms. Frazier. SEP remained a 
tenant on a month-to-month basis from July 1996 to 
June 2000 because a) consolidation of certain police 
services made vacation of the 1101 Capp Street 
location a possibility, and b) long term funding for SEP 
ned. SFPD has since made a policy 
decision to continue SEP according to Ms. Frazier. 

None 

1. According to Ms. Claudine Venegas of DRE. the 
proposed rent of $1.70 per square foot, which is a 
percent increase from the previous rent, represent- 
fair market rate. 



2. According to Mr. Anthony DeLucchi of DRE, funds 
for the new lease are available in the Police 
Departments FA" 1999-2000 budget and the Police 
Department's proposed FY 2000-2001 budget. 

\ccording to Ms. Venegas, the proposed resolution 
is retroactive because the landlords requested that the 
lease be entered into immediately (in order to realize 
gains from increased rent), and that approval from the 
Board of Supervisors is therefor sought retroactively. 
Ms. Venegas states that DRE accommodated this 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 17, 2000 Finance and Labor Committee Meeting 

request because the landlords bad experienced 
significant delays, and had expressed that further 
delays would result in their solicitation of other 
tenants. 

Recommendation: Approval the proposed resolution is a policy matter for 

the Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 17, 2000 Finance and Labor Committee Meet in- 



Item 18 - File 00-0849 
Department: 

Item: 

Location: 

Purpose of Lease: 

Lessor: 

Lessee: 

No. of Sq. Ft. and 
Cost Per Month: 

Annual Cost: 



Increase (Decrease) 
in Cost: 



Term of Lease: 



Right of Renewal: 



Public Library 

Department of Real Estate (DRE) 

Resolution authorizing a new lease of real property at 
2 150 San Bruno Avenue for the San Francisco Portola 
Branch Public Libr 

2 150 San Bruno Avenue 

Space for the Portola Branch Library 

Chun Pang Kir, Mei On Kir 

City and County of San Francisco 



Approximately 3,475 square feet at $1.88 per square 
foot per month, for a total of $6,533 per month 
96 annually). 

196 per year, for five years. The proposed lease 
would be subject an annual increase of either via a 
CPI adjustment, or by four percent. whi< 
greater. 



Mr Richard Walsh of the Public Library reports that 
since July 1. 1995 the monthly rent for the 
approximate 3,475 square feet has remained the same, 
with no increases, at S3. 405. 50 per month (SO. 98 per 
square foot per month, or S40.866 per year). L'nder 
the proposed lease, rent would increase by S3. 127.50 
per month, from the previous rent of S3, 405. 50 to 
$6,533 per month (an increase of $32,730 annually, 
from S40.866 to $78,396), a 91.8 percent increase. 

Five years, commencing on July 1. 2000 and 
terminating on June 30, 21 

The City would have the option to extend the lease for 
one additional five-year period, at which time the 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 17, 2000 Finance and Labor Committee Meeting 



Utilities and Janitor 
Provided by Lessor: 



Description: 



Tenant Improvements: 
Comments: 



landlord would adjust the rent to 95% of the prevailing 
market rate 1 . 

The City would be responsible for metered gas and 
electrical, and janitorial service. The landlord would 
pay for water. 

The proposed resolution would approve a five-year 
lease to provide approximately 3,475 square feet of 
space for the Portola Branch Library for a monthly 
rent of $6,533 ($78,396 annually). 

According to Mr. Walsh, the previous five year lease 
for the same space will expire on June 30, 2000. Mr. 
Walsh advises that the large rent increase is due to 
changes in the real estate market. The proposed lease 
is not an extension, but rather an entirely new lease, 
as the property was recently purchased and is under 
new ownership. 

None 

1. According to Ms. Claudine Venegas of DRE, the 
proposed rent of $1.88 per square foot, which is a 91.8 
percent increase from the previous rent, represents 
fair market value. 



2. According to Mr. Walsh, funds for the new lease 
have been included in the Public Library's FA* 2000- 
2001 budget. 



Recommendation: 



3. As a condition of the lease, the landlord will replace 
the heat and air conditioning unit at the subject 
property at no cost to the City. 

Approve the proposed resolution. 



1 The method by which the prevailing rate will be determined is described in detail in a 
standard DRE provision in the lease agreement. According to Ms. Claudine Venegas of DPH. 
the provision states: (a) that if the parties cannot agree as to the prevailing market rent, each 
shall select an appraiser, (b) that if the two appraisals differ by less than 10%, the average 
shall be the prevailing market rent, and (c) that if the appraisals differ by more than 10%, 
then the appraisers shall select a third appraiser, and the third appraisal shall be averaged 
with the closer of the two previous appraisals for the prevailing market rent. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 17, 2000 Finance and Labor Committee Meeting 

Item 19 - File 00-0850 

Department: Department of Real Estate (DRE) 

Ethics Commission 

Item: Resolution authorizing a lease of 2,998 square feet at 30 Van 

Ness Avenue to be used as office space for the Ethics 
Commission. 

Location: 30 Van Ness Avenue 



Purpose of Lease: Rental of office space 



Lessor: 

Lessee: 

No. ofSq. Ft. and 
Cost Per Month: 

Annual Cost: 



Herbst Foundation, a non-profit organization 

Citv and Countv of San Francisco 



2,998 square feet at approximat. pet square foot per 

month or $7,994.67 per month 

'36 



Utilities and 
Services Provided 
by Lessor: 



The Landlord provides (a) janitorial and security guard 
services, (b) heating, air conditioning, and ventilation 
durum normal business hours, (c) passenger elevator 
service, (d) electricity for normal business use, including 
use of personal computers and other office machines, and 
(e) water for drinking and lavatory. 



Term of Lease: December 1, 2000 through November 30, 2005 (5 years) 

Right of Renewal: Two additional terms of 5 years each 



Source of Funds: 
Description: 



FY 2000-2001 Ethics Commission Budget 

The Ethics Commission currently leases 2,551 square feet of 
office space at 1390 Market Street (Fox Plaza) and the lease 
will expire November 30. 2000. The owner of Fox Plaza has 
quoted a lease renewal rate of $45 per square foot per year or 
S3. 75 per square foot per month. Under the quoted lease 
renewal rate, annual rent would be $114,795 and monthly 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 17, 2000 Finance and Labor Committee Meeting 

rent would be $9,566.25. The Ethics Commission is now 
proposing to move its offices to 30 Van Ness Avenue. The 
proposed lease at 30 Van Ness Avenue would be for 2,998 
square feet of space at an annual cost of $32 per square foot 
or $2.67 per square foot per month, totaling $95,936 in 
annual rent, which is $18,859 or 16.4 percent less than the 
quoted Fox Plaza lease renewal annual rent of $114,795. On 
a monthly basis, the proposed lease rate of $2.67 per square 
foot is 28.8 percent less than the quoted Fox Plaza lease rate 
of $3.75 per square foot per month. 

Comments: 1. According to DRE, the current annual lease rate for 2,551 

square feet of office space at Fox Plaza for the Ethics 
Commission is $34,404, which equals $13.47 per square foot 
per year or $1.12 per square foot per month. The quoted 
renewal rate of $45 per square foot per year is $31.53, or 234 
percent, more than the current annual rental rate of $13.47 
per square foot. 

2. In addition to the proposed annual rent of $95,936 to lease 
2,998 square feet of space at 30 Van Ness Avenue, the City 
would pay $25,000 toward the construction of tenant 
improvements, including installation of a kitchenette and 
shelving. Total first year costs for rent and tenant 
improvements would be $120,936. 

3. According to Mr. Charlie Dunn of DRE, estimated moving 
costs are approximately $2.00 per square foot or $5,996 ($2 
times 2,998 square feet) and the estimated cost of 
telecommunications installation is approximately $15,000, 
for total moving-related costs of $20,996. Total first year 
costs, including annual rent, moving costs, 
telecommunications installation, and tenant improvements, 
are approximately $141,932 ($95,936 rent, plus $5,996 
moving costs, plus $15,000 telecommunications installation, 
plus $25,000 tenant improvements). 

4. After November 30, 2001, which is the end of the first year 
of the lease, in addition to the annual base rent of $95,936, 
the City would incur additional costs as follows: 

(a) The Ethic Commission's share of increased expenses for 
the whole building, which equals 1.68 percent of such 
increased expenses (2,998 square feet divided by 178,128 
square feet, the total rentable square feet in the building). 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 17, 2000 Finance and Labor Committee Meeting 



According to Mr. Dunn, such increased building expenses 
would include increases in property taxes, insurance, and 
other increased costs that affect the building as a whole. 
(b) The Ethic Commission's share of increased expenses for 
office expenses, which equals 1.86 percent of such 
increased expenses (2,998 square feet divided by 160,768 
of rentable office space). According to Mr. Dunn, such 
increased office expenses would include increased costs for 
janitorial and security guard services, garbage collection, 
electricity and other increased operating costs. 

5. The proposed lease agreement also provides that the City 
shall reimburse the landlord for electrical improvement costs 
exceeding $23,984 and mechanical improvement costs 
exceeding $23,984 in addition to the City's reimbursement of 
$25,000 to the landlord for tenant improvement costs. Mr 
Dunn states that any electrical or mechanical improvements, 
in addition to such improvements provided for in the subject 
lease and in excess of $23,984 for each improvement, would 
be at the request of the City. 

6. Alter expiration of the subject lease on November 30, 2005, 
the City would have the option to renew the lease for an 
additional 5 years. If the City were to renew the subject 

beginning on December 1, 2005, the annual base rent 
would be adjusted upward by the ratio of the Consumer Price 
Index (CP1) in the adjustment year to the CPI in the 
beginning year. The base rent would not be adjusted 
downward if the adjustment year CPI were less than the 
beginning year CPI. Additionally, the City would have the 
option to renew the subject lease for a second 5-year renewal 
term, beginning on December 1, 2010, for a rental rate equal 
to 95 percent of the fair market value at that time. 1 



Recommendation: Approve the proposed resolution. 



1 The method by which the prevailing rate would be determined is described in detail in a standard 
DRE provision in the lease agreement. According to Ms. Claudine Venegas of DRE. the provision 
states: (a) that if the parties cannot agree as to the prevailing market rent, each shall select an 
appraiser, (b) that if the two appraisals differ by less than 10%. the average shall be the prevailing 
market rent, and (c) that if the appraisals differ by more than 10°o. then the appraisers shall select a 
third appraiser, and the third appraisal shall be averaged with the closer of the two previous 
appraisals for the prevailing market rent. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 17, 2000 Finance and Labor Committee Meeting 

Item 22 - File 00-0040 

1. This hearing is to consider the financial condition of the San Francisco 
Unified School District, including a district staff overview of estimated local, state 
and federal revenues and anticipated expenditures. The following is an analysis 
prepared by the Budget Analyst which addresses the financial condition of the 
District and summarizes the internal control weaknesses identified in 1) the FY 
1998-1999 Single Audit Report prepared by Deloitte and Touche and 2) the 
Comprehensive Fiscal Assessment prepared by the State Fiscal and Crisis 
Management Assistance Team. 

Financial Condition of the San Francisco Unified School District 

2. On March 29, 2000, Deloitte and Touche issued its single audit report on the 
District for FY 1998-1999. The audit report on the District's FY 1998-1999 general 
purpose financial statements was unqualified but the auditor's opinion emphasized 
a the Note to the General Purpose Financial Statements concerning the 
appointment of the State Fiscal Crisis and Management Assistance Team. The 
general purpose financial statements state that at June 30, 1999, the District's 
reserve for economic uncertainty exceeded the State required two percent reserve 
requirement. 

3. The State Fiscal and Crisis Management Assistance Team (FCMAT) 
appointed by the Governor (see further discussion below) was assigned the task of 
assessing whether the District is capable of meeting its fiscal obligations for the 
current and two subsequent fiscal years. Accordingly, the FCMAT prepared a multi- 
year projection to determine the solvency of the District for Fiscal Years 1999-2000, 
2000-2001, and 2001-2002. Using conservative economic assumptions and estimates 
that include step adjustments for all employee groups but does not include merit or 
promotional salary increases, the FCMAT multi-year projection forecasts a positive 
ending balance that exceeds the District's required two percent economic 
uncertainty reserve requirement. However, the FCMAT also points out the 
declining enrollment trends identified in the projections. They stress that "this 
enrollment trend, coupled with any modest salary increase, could place the district 
in a precarious fiscal position." As such, they stress the need for the District to put a 
procedure in place to update these projections at each Interim report (required on 
October 31 and January 31 of each year), or at any time underlying assumptions 
change. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 17, 2000 Finance and Labor Committee Meeting 

Summary of Internal Control Weaknesses Identified 

4. FY 1998-1999 Single Audit Report (Deloitte and Touche) 

Summary of Findings and Recommendations 

On March 29, 2000, Deloitte and Touche issued its single audit report on the 
District for FY 1998-1999. The audit report on the District's FY 1998-1999 general 
purpose financial statements was unqualified but the auditor's opinion emphasized 
a the Note to the General Purpose Financial Statements concerning the 
appointment of the Stair Fiscal Crisis and Management Assistance Team. 
Additionally, Deloitte and Touche identified four material weaknesses with regard 
to the District's internal control over its financial reporting and operations. A 
summary of Deloitte and Touches findings fallows. 

a. Weaknesses in the accounting and finance function 

• The District's accounting and finance function was adversely affected by the 
conversion to a new financial information system, weakened internal 
controls, and the September 1999 departure of the Chief Financial Officer. 

• The year-end closing process was neither timely nor efficient. After first 
attempting to close its books in September of 1999, over 200 post-closing 
adjustments forced the District to close its books again in January of 2000. 
Additional significant adjustment nil required after that second 
dosing. This resulted in the State Superintendent of Public Instruction 
appointing the Fiscal and Crisis Management Assistance Team (FCMAT) as 
an expert fiscal advisor to the District (see below). 

• The lack of a timely closing did not allow for adequate management review of 
the year-end financial statements or account ana!- 

• There was limited oversight and review of significant journal entries. 

• There are significant delays and problems in reconciling key accounts, such 
as cash and payroll accounts, and with posting and reconciling Federal and 
State revenue. 

• The accounting for capital project retentions was incorrect. 

• There was insufficient oversight of capital project escrow accounts. 

• There were errors in accounting for encumbrances at year-end. 

Deloitte and Touche recommended that the District re-engineer its 
accounting and finance function in order to (a) increase the quantity and quality of 
its accounting staff, (b) implement a more formal risk analysis review proo - 
assign financial reporting responsibility to an appropriately qualified staff member, 
and (d) develop appropriate documentation support for financial statements. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 17, 2000 Finance and Labor Committee Meeting 

The District responded that it was undertaking the following initiatives: 

V It was hiring a financial management expert to assist with staff evaluation, 
internal controls, and staff development. 

V It had hired a Director of Fiscal Services to oversee and restructure the 
accounting and budget operations. 

V It was establishing an internal audit function to enhance accountability, and 
was developing standards for the financial division. 

b. Lack of timelv account reconciliations and analyses 

• The District had difficulty reconciling cash and other significant accounts on 
a timely basis, opening up the possibility that material errors and fraud could 
occur and not be detected within a reasonable period of time. 

• No bank reconciliations were completed for the commercial checking account 
in FY 1998-1999. 

• Only one payroll account reconciliation was performed in FY 1998-1999. 

• The Payroll Trust Fund was not reconciled in either FY 1997-1998 or FY 
1998-1999. 

Deloitte and Touche recommended that the District establish a formal 
monthly and annual closing process which ensures that all significant accounts are 
reconciled and analyzed on a timely basis. 

The District responded that the new Director of Fiscal Services would oversee 
implementation of accurate and timely reconciliations and reporting requirements 
by no later than June 30, 2001. 

c. Employee personnel files 

• Poor maintenance of employee personnel files. 

• Of 460 files tested, 16 (3.5%) files could not be located. Further, the auditors 
were unable to verify the existence of six of the employees whose personnel 
files were sampled. 

• There were 66 employees paid at incorrect rates. 

• The auditor was unable to verify' the appropriate fund source or program 
allocation in 69 files. 

Deloitte and Touche recommended that the District establish a formal policy 
to ensure centralized organization of employee personnel files, clear documentation 
of pay rates and fund/program allocations, and periodic reviews for accuracy and 
completeness. It also recommended electronic back-up files. Deloitte and Touche 
made a similar recommendation to the District in their prior year report, however 
no corrective actions were taken. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 17, 2000 Finance and Labor Committee Meeting 

The District responded that it would hire a Records Manager to implement 
these recommendations by June 30, 2002. 

d. User access privileges 

• User access privileges to salary and personnel information is not limited to 
key payroll and human resources staff. 

• There are no sign-offs which track who makes what entries and there i- no 
management review of salary input. 

Deloitte and Touche recommended that the District limit user access 
privileges to key personnel and that the District documents its user access 
responsibilities. Deloitte and Touche made the same recommendation to the District 
in their prior year report, however no corrective actions were taken. 

The District responded that it would implement these recommendation.- by 
April 30, 2000. 

5. State Fiscal and Crisis Management Assistance Team (FCMAT) 

Summary of Findings and Recommendations 

a. The Governor and the State Superintendent of Public Instruction requested 
FCALAT to conduct a comprehensive assessment of the District's financial condition 
and fiscal practices between July of 1999 and April of 2000. The FCMAT is 
comprised of permanent FCMAT Matt, part-time consultants, independent certified 
public accountants and professional- with specifically directed expertise (such as 
management information systems expertise). FCMAT assessed the District in terms 
of (a) its financial and budgetary condition, (b) its internal controls, (c) the 
implementation of its new management information system, and (d) multi-year 
projections to determine its solvency for Fiscal Years 1999-2000 through 2001-2002. 
In December of 1999, during the course of the FCMAT study, the Superintendent of 
Public Instruction also appointed FCiVLYT as an expert fiscal advisor to assist the 
District to close its 1998-1999 books. Furthermore, the District's external audit 
report, which should have been submitted by December 15, 1999, was not submitted 
until March 31, 2000, and District's budget office staff did not perform any 
significant monitoring for the 1999-2000 budget. 

b. In its April 17. 2000 report, FCMAT assessed the District as financially 
solvent for FY 1999-2000, but questioned the District's capability to prudently 
manage its resources and uphold its fiduciary responsibility. FCMAT reported that 
the District "is having great difficulty in meeting basic industry and legal standards 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 17, 2000 Finance and Labor Committee Meeting 

relative to the district's financial operations and that the district's management 
information system functions at an unacceptably low level." 

c. FCMATs internal control review covered financial transactions, policies, and 
procedures in 16 areas and identified, in general, an internal control structure that 
is materially deficient. Additionally, FCMAT found that there is a substantial lack 
of internal control consciousness in the District. These weaknesses result in 
inefficient and ineffective operations in the District, provide unreliable and 
untimely financial information and may result in violations of laws and regulations. 

d. FCMAT identified 24 areas that have "material weaknesses." These are 
internal control deficiencies that could permit errors, fraud or abuse, or violations of 
laws or regulations. Because of such weaknesses, employees performing normal 
duties may not be able to detect errors within a timely period. The material 
weaknesses are summarized as follows: 

• The Board of Education is not receiving adequate information and in some 
cases staff have not submitted legally required documents to the Board for 
approval. 

• Financial technical and leadership skills in the District are deficient. 

• Weaknesses were identified in accounting for encumbrances, construction 
retention, suspense accounts, and more than 40 capital projects supported by 
the State School Building Fund. 

• The District budget does not meet the requirements of the Education Code or 
other standards for a clear, concise, and comprehensive budget and has 
technical errors. Further, there was no significant monitoring of the 1999- 
2000 budget and budget staff are not properly supervised or trained. 

• There are not adequate controls in place to ensure that paychecks are 
accurate, that payroll deduction payments and reconciliations are timely and 
accurate, or that user access privileges to salary and budget information is 
limited to appropriate personnel. 

• There are missing, incomplete, and inadequately documented personnel files. 

• There is no centralized purchasing function, no controls to ensure proper 
approval and coding of purchases, no separation of duties between the 
purchasing and payment functions, and public projects are not being 
appropriately bid. 

• There are not adequate controls in place to ensure that personal services 
contracts are appropriately classified as independent contractors. 

• Bank account reconciliations are not being performed on a monthly basis. 

• District employees funded from federal programs are not maintaining time 
documentation required by OMB A-87. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 17, 2000 Finance and Labor Committee Meeting 

• The District is not using the appropriate form to prepare the closing entries 
for all Federal and State categorical funding, resulting in errors in the 
District's financial statements. 

• Cash receipts and disbursements in Associated Student Body accounts are 
not being properly accounted for and/or controlled. 

• The District does not maintain information on fixed assets that meets 
Generally Accepted Accounting Principle requirements, the Education Code, 
or Title 34 of the Code of Federal Regulations. 

• The attendance records for the community school program were incomplete. 

e. FCMAT identified an additional 18 areas that have "reportable conditions." 

These are significant deficiencies in the design or operation of an internal control 
that could adversely affect the District's ability to record, process, summarize, and 
report financial data. These reportable conditions were identified in the following 
nine areas of the 16 areas that were reviewed by FCMAT: general financial, 
budgeting, payroll, revenues, cash management, categorical management and 
accounting, construction accounting, cafeteria accounting and Associated Student 
Body. 

f FCMAT also identified 13 areas requiring "management improvements." 

These are suggestions for improving District operations to conform to best practices. 
These management improvements were identified in the following eight areas of the 
16 areas that were reviewed by FCMAT: general financial, accounting, personnel, 
purchasing and contracts, disbursements, debt management, cafeteria accounting 
and Associated Student Body. 

g. Significant additional findings identified by FCMAT are as foil 

• Key accounting and budgeting staff do not demonstrate the necessary skills. 
training, and leadership to perform competently and ensure the District's 
financial information will be accurate and timely. 

• Records are not maintained in an orderly manner and it is often difficult to 
find support for District transactions. For example, the fiscal year-end closing 
checklist did not have any entries to indicate that any steps in the year-end 
closing had been completed. Such inadequate documentation for accounting 
transactions had led to numerous errors in the closing entries for Federal and 
State programs. 

• The new District management information system functions at a very low 
level and staff are inadequately trained to use it. That system's general 
ledger produces only one general ledger report. Other necessary system 
functions either perform at a very low level or have never been implemented. 

• Insufficient internal system security means that (a) user access privileges to 
salary and budget information is not limited to key human resources and 
budget personnel, and (b) payroll department staff could change the 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 17, 2000 Finance and Labor Committee Meeting 

information on the pay screen for any employee without a checks and balance 
system in place. 

6. Deloitte and Touche reported that the State Superintendent of Public 
Instruction has considerable latitude in determining the extent of action steps, if 
any, to be taken as a result of the findings contained in FCMAT's report. Such 
action steps could range from taking no further action to the State assuming direct 
control of the District. 

District response 

7. Ms. Linda Davis, Interim Superintendent of the San Francisco Unified School 
District, advises that she will brief the Finance and Labor Committee at its May 17. 
2000 meeting on the District's response to the findings of both the Deloitte and 
Touche and FCMAT reports. 

Comments of Budget Analyst 

1. As verified by Ms. Peg Stevenson in the Controller's office, in FY 1999-2000, 
the City provided the District with General Fund monies in the amount of 
$2,913,315 for the following uses: 



Program (and Source of Funding) 


Sub-total 


Budget 


SFUSD County Education Office 1 






SFUSD Sports Program (Stadium Admissions Tax/General 


$1,056,000 




Fund) 






SFUSD Music Program (Children's Baseline) 


600,000 




Administration (General Fund) 


65,315 




Less work order recoveries 


(15.000) 


$1,706,315 


Elementary Arts Education Program 




657,000 


(one-time funding from the General Fund Reserve) 






Lincoln and Galileo High Schools Wellness Centers 




550.000 


(Department of Children, Youth, and Their Families) 






TOTAL: 




$2,913,315 



1 In accordance with the City Charter and the State Education Code, the City is required to 
compensate seven members of the Board of Education, pay a portion of the County Superintend 
salary, pay for related mandatory fringe benefits, and pay for materials and supplies required by the 
Superintendent of Schools. The SFUSD County Education Office budget includes these amounts. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 17, 2000 Finance and Labor Committee Meeting 

2. Both Deloitte and Touche and FCMAT identified material weaknesses in the 
internal controls of the District. FCMAT reviewed financial transactions, policies 
and procedures in 16 separate functions in the District and identified 24 separate 
material weaknesses in 13 of those areas. As previously defined, material 
weaknesses are control deficiencies that could permit undetected errors, fraud or 
abuse, as well as noncompliance with laws and regulations. As such, each 
individual material weakness is considered to be a serious deficiency in its own 
right, leaving the District financially vulnerable. 

3. In the professional judgement of the Budget Analyst, the large number of 
material weaknesses identified and the fact that they are prevalent across a wide 
number of functions in the District point to extensive and systemic problems in the 
financial management and control of the District Based upon information provided 
in the two reports, it is likely that these problems developed over the course of 
several years, and may have been exacerbated by the exit of key personnel and poor 
implementation of crucial financial systems. 

4. Given the current circumstances the Budget Analyst concludes it will take 
time for the extensive improvements required to the District's financial operations. 
An immediate improvement in staff competency through training is essential, as is 
proper supervision and review of the work of the staff. In addition to ensuring that 
the various functions are appropriately -tailed with competent personnel whose 
work is properly supervised and reviewed, financial management's major challenge 
will be the implementation of a fully functioning financial information system and 
the establishment of District financial policies and procedures that will create an 
appropriate internal control environment in the District. Such improvements will 
require extensive planning to ensure that all issues are appropriately addressed, 
and then the improvement plan will take time to implement. 



If) *1 ' /^ 



Harvev M. Rose 



Supervisor Yee 
Supervisor Bierman 
President Ammiano 
Clerk of the Board 
Controller 
Steve Kawa 



BOARD OF SUPERVISORS 
BUDGET ANALYST 




[All Committees] 

City and County of §an Francisco MafrTuSraJj Document Section 
Meeting Minutes 
Finance and Labor Committee 

Members: Supervisors Leland Yee, Sue Bierman, Tom Ammiano 
Clerk: Mary Red 



Wednesday, May 24, 2000 



10:00 AM 
Regular Meeting 



City Hall, Room 263 



Members Present: Leland Y. Yee, Sue Bierman, Tom Ammiano. 



nnnuMFMT.g HPPT 



Meeting Convened 

The meeting convened at 10:16 a.m. 



MAY 3 2CC3 

SAN FRANCISCO 
PUBLIC LIBRARY 



000574 [Fire Code - Increase Fees for Services] 

Ordinance amending Part II, Chapter IV of the San Francisco Municipal Code (Fire Code) by amending 
Section 106 to increase fees for services and by amending Article 90 to require fire pumps to be capable of 
operating on emergency power. (Fire Department) 

(Amends Section 106 and Article 90.) 

4/12/00, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

5/10/00, CONTINUED. Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Supervisor Yee; Assistant Deputy Chief Garry 

Massetani, Fire Marshall; Captain Tom Harvey, Fire Department; Ken Bruce, Budget Analyst's Office; Cathy Brandhorst. Continued to 

May 24, 2000. 

Heard in Committee. Speakers: Han'ey Rose, Budget Analyst, Assistant Deputy Gary Massetani, Fire 
Department. 

RECOMMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



000771 [Government Funding - Assessor's Office] 

Ordinance appropriating $315,167 from the General Fund Reserve for litigation and mediation expenses 
associated with the VIACOM assessment appeal for the Assessor's Office for fiscal year 1 999-2000. 
(Controller) 

(Fiscal impact.) 

4/26/00, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Doris Ward, Assessor: Supervisor Yee; Gloria 

Young, Clerk of the Board; Dawn Duran, Administrator, Assessment Appeals Board; Peter Fatooh, President. 

Assessment Appeals Board; Supervisor Ammiano. Amendment of the Whole to reduce amount of General 

Fund Reserve as a source of funds by $30,280. 

AMENDED, AN AMENDMENT OF THE WHOLE BEARING NEW TITLE. 



City and County of San Francisco 



Printed at 4:48 PM on SnVOO 



Finance and Labor Committee 



Meeting Minutes 



Muv 74, 200(1 



Ordinance appropriating $284,887 from the General Fund Reserve for litigation and mediation expenses 
associated with the VIACOM assessment appeal for the Assessor's Office for fiscal year 1999-2000. 
(Controller) 

(Fiscal impact.) 

RECOMMENDED AS AMENDED by the following vote: 

Ayes: 3 - Yee, Bierman, Ammiano 



000772 (Government Funding - Laguna Honda Hospitalj 

Ordinance appropriating $9,243,481 of Tobacco Settlement Funds for architectural, engineering and 
construction costs for the Laguna Honda Hospital Project, for fiscal year 1999-2000. (Controller) 

(Fiscal impact.) 

4/26/00. RECEIVED AND ASSIGNED to Finance and Labor Committee 

Heard in Committee Speakers Harvey Rose, Budget Analyst. Michael Lane, Department of Public Works. 

Janet Overhow, Center of Independent Living, Larry Funk. Administrator. Laguna Honda Hospital 

Amendment of the Whole placing S3. 37 1. 740 on reserve 

AMENDED, AN AMENDMENT OF THE WHOLE BEARING NEW TITLE. 

Ordinance appropriating $9,243,481 of Tobacco Settlement Funds for architectural, engineering and 
construction costs for the Laguna Honda Hospital Project, for fiscal year 1999-2000; placing $3,371,740 on 
reserve. (Controller) 

(Fiscal impact.) 

RECOMMENDED AS AMENDED by the following vote: 

Ayes: 3 - Yee, Bierman, Ammiano 



000773 |Government Funding - City Attorney! 

Ordinance appropriating $1,139,504 from the General Fund Reserve to fund salaries, fringe benefits, and 
professional and expert services for litigation of San Francisco Business Tax cases, for the City Attorney, for 
fiscal year 1999-2000. (Controller) 

(Fiscal impact.) 

4/26/00. RECEIVED AND ASSIGNED to Finance and Labor Committee 

Heard in Committee. Speakers Harvey Rose. Budget Analyst. Ted Lakey. City Attorney Supervisor 

Ammiano; Susan Leal. Treasurer. Kim Manolius. Deputy City Attorney. Supervisor Yee. Steve Kawa, Mayor's 

Budget Office. Amendment of the Whole to reduce the amount of General Fund Reserve as a source of funds 

by $167. 292 

AMENDED, AN AMENDMENT OF THE WHOLE BEARING NEW TITLE. 

Ordinance appropriating $972,212 from the General Fund Reserve to fund salanes. fringe benefits, and 

professional and expert services for litigation of San Francisco Business Tax cases, for the City Attorney, for 

fiscal year 1999-2000. (Controller) 

(Fiscal impact.) 

RECOMMENDED AS AMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



City and County of San Francisco 



Printed at 4:48 PM on i\7S.V0 



Finance and Labor Committee 



Meeting Minutes 



May 24, 2000 



000774 [Government Funding - Sheriff Department] 

Ordinance appropriating $4,901,934, including $2,142,1 14 from the General Fund Reserve, $2,500,000 from 
the Jail Overcrowding Reserve, $9,820 from State Mandated Cost Revenues, and $250,000 from City Hall 
Special Event Revenue to fund workers' compensation, residential treatment beds, costs associated with the 
new defendant tracking systems and the creation of one ( 1 ) position for the Sheriff Department, for fiscal year 
1999-2000. (Controller) 

(Fiscal impact; Companion measure to File 000787.) 

4/26/00, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Michael Hennessey, Sheriff; Supervisor 

Ammiano; Supervisor Yee; Supervisor Bierman. Amendment of the Whole to reduce the amount of funding by 

$206,837 which includes $197,01 7 from General Fund Resene and $9,820 State Mandated Cost Revenues 

for one position. 

AMENDED, AN AMENDMENT OF THE WHOLE BEARING NEW TITLE. 

Ordinance appropriating $4,695,097, including $1,945,097 from the General Fund Reserve, $2,500,000 from 
the Jail Overcrowding Reserve, and $250,000 from City Hall Special Event Revenue to fund workers' 
compensation, residential treatment beds, costs associated with the new defendant tracking systems, for fiscal 
year 1999-2000. (Controller) 

(Fiscal impact) 

RECOMMENDED AS AMENDED by the following vote: 

Ayes: 3 - Yee, Bierman, Ammiano 



000787 [Salary Ordinance Amendment No. 4, creation of one (1) Class 8304 Deputy Sheriff position) 

Ordinance amending Ordinance No. 209-99 (Annual Salary Ordinance, 1 999-2000) reflecting the creation of 
one (1) position for the Sheriffs Office. (Human Resources Department) 

(Companion measure to File 000774.) 

4/26/00, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Michael Hennessey, Sheriff; Supervisor 

Ammiano; Supervisor Yee; Supervisor Bierman. 

TABLED by the following vote: 

Ayes: 3 - Yee, Bierman, Ammiano 



000775 [Government Funding - Fire Department) 

Ordinance appropriating $2,249,123 from the General Fund Reserve, $500,000 from Fire Department Permit 
Fee Revenues, and rescinding and reappropriating $1,270,259 from the departmental lease purchase budget, to 
fund salaries, overtime, fringe benefits, workers' compensation, uniforms and protective clothing at the Fire 
Department, for fiscal year 1999-2000. (Controller) 

(Fiscal impact.) 

4/26/00, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Deputy Chief Debacco, Fire Department. 

Debra Ward, Chief Financial Officer; Supervisor Yee; Ken Bruce, Budget Analyst's Office; Supervisor 

Ammiano. Amendment of the Whole to reduce the amount of General Fund Reserve as a source of funds h\ 

$341,000. 

AMENDED, AN AMENDMENT OF THE WHOLE BEARING NEW TITLE. 



City and County of San Francisco 



Printed al 4:48 PM on 5/25/00 



Finance and Labor Committee 



Meeting Minutes 



May 74, 2(101) 



Ordinance appropriating $1,908,123 from the General fund Reserve, SSOO,000 from Fire Department Permit 
Fee Revenues, and rescinding and reappropnating SI, 270,259 from the departmental lease purchase budget, to 
fund salaries, overtime, fringe benefits, workers' compensation, uniforms and protective clothing at the lire 
Department, for fiscal year 1999-2000. (Controller) 

(Fiscal impact.) 

RECOMMENDED AS AMENDED by the following >ote: 
Ayes: 3 - Yee, Bierman, Ammiano 



000779 (Government Funding - San Francisco General Hospital] 

Ordinance appropriating $10,000,000 from the General Fund Reserve to cover a revenue shortfall at San 
Francisco General Hospital in the SB855 Disproportionate Share Payment Program, for fiscal year 1999-2000. 
(Controller) 

(Fiscal impact.) 

4/26/00. RECEIVED AND ASSIGNED to Finance and I abor Commiltec 

Heard in Committee Speakers Harvey Rose. Budget Analyst, Monique Zmuda. Department of Public 

Health; Supervisor Yee. Amendment of the Whole reducing the amount requested from General Fund Reserve 

by $59,243. 

AMENDED, AN AMENDMENT OF THE WHOLE BE AKIM, NEW Mill 

Ordinance appropriating $9,940,757 from the General Fund Reserve to cover a revenue shortfall at San 
Francisco General Hospital in the SB855 Disproportionate Share Payment Program, for fiscal year 1999-2000. 
(Controller) 

(Fiscal impact.) 

RECOMMENDED AS AMENDED b> the following >ote: 
Ayes: 3 - Yee, Bierman, Ammiano 



000840 |Airport concession lease of the Domestic Banking Services (Bank of America) at a minimum rent for 
thefirst year of $261,000| 

Resolution approving Domestic Banking Services lease in the North, Central and South Terminal Buildings 
between Bank of America, National Association and the City and County of San Francisco, acting by and 
through its Airport Commission. (Airport Commission) 
5/3/00, RECEIVED AND ASSIGNED to Finance and Labor Committee 

Heard in Committee Speakers Harvey Rose. Budget Analyst; Jon Ballestros. Airport; Supervisor Ammiano. 
Ted Lakey. Deputy City Attorney Amendment of the Whole providing Proposition F conditions. 
AMENDED, AN AMENDMENT OF THE WHOLE BE \KIM . S \ME TITLE. 
REFERRED WITHOUT RECOMMENDATION by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



City and County of San Francisco 



Printed at 4:48 PM on 5 25 W 



Finance and Labor Committee Meeting Minutes May 24, 2000 



990252 [Living Wage Ordinance] 

Supervisors Ammiano. Bierman 

Ordinance amending the Administrative Code by adding Chapter 12N (Sections 12N. 1 through 12N.13) to 
provide that a prescribed minimum level of compensation (A "Living Wage") be paid to certain employees of 
parties who enter into contracts for the exclusive use of property owned by the City and County and to certain 
employees of parties who enter into contracts for the exclusive use of property owned by the City and County; 
adds Section 20.58.6 to provide that the number of hours of services required of general assistance recipients 
who are performing services in order to maintain eligibility shall be calculated using the living wage; adds 
Section 20.77.6 to provide that the maximum number of hours of services required of persons who are 
performing services in order to maintain eligibility for the monthly PAES stipend shall be calculated using the 
living wage; and adding Section 70.1 1 to provide that employees of the In-home Supportive Services Public 
Authority be paid the living wage. 

(Fiscal impact; Adds Sections 12N.1 through 12N.13, 20.58.6 and 20.77.6.) 
2/1 7/99, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

3/6/99, CONTINUED. Heard in Committee. Speakers: Father Peter Sammon; Nettie Ceasar; Danny Elvena; Bemadine Emperodor; 
Garth Gandy, People Organized for Employment Rights (POWER); Martina Gills; Josie Mooney; Bob Planthold; Nancy Lewis, RN; 
Lucille Flato; Khilil Ali; Lester Martin; Darnel Loggins; Arthur Campagna; Hank; Robert Boileau; Jim Illig; Pat Breslin; Shirley Bierly, 
Council for Older Americans; David Novogrodsky; Julia Lopez; Sam Sui; Garrett Jenkins; Frederick Hobson, Milissa Bowen; Mikki 
Ellis; Stan Thomson, POWER; Raymond Liu; Walter Johnson, S.F. Labor Council; Rand Quinn, Coalition for Immigrant Rights, Richard 
Klinke; Jonathan Beauer; Charles Andrew; Ricardo Brooks Alba; Richard Ow; Dorothy James; Ed Williard; Marvin Warren; Fred Pecker; 
Dennis Kelly; Tim West; Denise D'Anne; Dawn Moore, Alma Santana; Criss Romero, Harvey Milk Democratic Club; Bill Price, 
President Senior Action Network; Erlinda Villa; Anna Sanchez, Richard Leung; Kent Mitchell, Jonathan Perez; Steven Curria; Margaret 
Hanlon-Gradie. Supervisor Bierman added as cosponsor. Continued to March 18, 1999. 

3/18/99, CONTINUED TO CALL OF THE CHAIR. Heard in Committee. Speakers: Rosie Byers, Homecare Worker; Ana Mana Loya, 
Director, LaRaza Centro Legal; Gary Atienza, Security Guard; Enc Mar, Director, Northern California Coalition for Immigrant Rights; 
Anuradha Mittal, Policy Director, Food First; Laura Trupin, UCSF; Steve Collier, Tenderloin Housing Clinic; Tom Van Dyke; Managing 
Director of Investments, U.S. BankyPiper Jaffray; Dr. Rajiv Bhatia, Division of Population Health and Prevention, Department of Public 
Health; Bob Ow, Catherine Raza, Homecare Workers; Deirdre Keane, Full-time Student; Erica Schoenberger, John Hopkins; Mark 
Gleason; Mario Flores, Vera Haile, In-Home Supportive Services; Tim West, Local 1877; Bruce Allison, Disabled; Kay Walker, SEIU; 
David Giesen; Erin McClary; Conny Ford; Marylouise Lovett, Women's Forum; Mikki Ellis; Ron Dicks, Local 21; Wade Hudson; Blair 
Fuller, Writer; Elva Cross-Garrett, Local 535; Howard Williams, Bike Messenger; Cleve Farondi; Juan Flores; Erin Morra; Mr. Vent, 
Taxicab Workers Union; Mrya Lopez; Mike Doolin, Rental Car Employee; Chns Romero, Harvey Milk Democratic Club ; Christine 
Gaddi, Student Union 205, City College of San Francisco; Rosana Majica; Bob Ulreich, Museum of Modem Art; Robert O'Malley; Elveta 
Stewart; Yolanda Catzalco; Elizabeth Boardman, Adult Day Health Center; Sally Buchman; Rua Graffis, Taxicab Dover; Eduardo 
Capillong; Louis Fiammetta; Reg O'Hare; Michael Butler; Security Guard; Daisy, Exotic Dancer's Alliance; Larry Edmund; Jason Broom. 
5/3/99, SUBSTITUTED. Supervisor Ammiano presented a living wage ordinance. 
5/3/99, ASSIGNED UNDER 30 DAY RULE to Finance and Labor Committee, expires on 6/2/1999. 
2/22/00, SUBSTITUTED. Submitted by Supervisor Ammiano in Board. 
2/22/00, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

5/3/00, CONTINUED Heard in Committee. Speakers: Supervisor Ammiano; Brian Murphy, Professor, S. F. State College; Michael 
Reich, Professor, U. C. Berkeley; Jim Illig, Chair, Living Wage Task Force; Rajiv Bhatia, M.D., Department of Public Health; Juanita 
Miles, Commission on the Status of Women; David Curto, Department of Human Services; Calvin Welch, Living Wage Task Force. Jim 
Mathias, S.F. Chamber of Commerce; Jo Lynne Lockley, Glynn Washington, Human Services Network; Kathleen Harrington, Golden 
Gate Restaurant Association (GGRA); Lara Truppelli, Beach Chalet; Patricia Breslin, GGRA; Amy Pompei, Pompei Grotto; George 
Lyons; Brian; Robert Wellbeloved; Betelnut Restaurant; Paul Lazzareschi; Robert O'Malley, Living Wage Coalition; Steven Cornell, 
Council of District Merchants (CDM); Chris Ditthafer, (CDM); Berry; Tom Creedon, Scoma's Restaurant; Laura Fraum; Manann 
Costello; Helen Hobbs, Tia Margarita; Colleen Meharry, Ms. Brown's Restaurant, Mark Mosher; Rolf Mueller (CDM); Supervisor 
Bierman. Continued to May 24, 2000 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Supervisor Ammiano; Father Ignatius, St. 
Anthony's Church; Agar Jaicks; Richard Ow; Dorothy Wong, S F.G.H.; Sister Bernie Galvin; Diane Verze- 
Reeher; Kaira Esponoza; Emma Harris, POWER; Sister Kathleen Healey. St. Teresa's Church; John Dean; 
Sam Siu, Local 87; Jane Morrison, S.F. Tomorrow; Norberto Martinez. Central American Resource Center; 
Libby Kiser; Marylouise Lovett; Dawn Moore; Rich Marquez, Multi-Ser\ice Center North; Burnett Raven. 
Airport; Qunzena Bell; Garnett Jenkins; Ken Westley; Bruce Jones. Jr ; Gordon Mar; Willie Williams; Kirsten 
Moller; Joseph Bolden, Poor Magazine; Moura Borisoua. 
CONTINUED TO CALL OF THE CHAIR. 



City and County of San Francisco 5 Printed at 4:48 P\1 on S/2SM0 



Finance and Labor Committee 



Meeting Minutes 



May 24, 2001) 



000841 [Reimbursement from Bond proceeds for costs incurred in the construction and improvements to the 
California Academy of Sciences! 

Resolution declaring the intent of the City and County of San Francisco to reimburse certain expenditures 
from proceeds of future indebtedness; and approving and ratifying previous actions. (Mayor) 
5/3/00, RECEIVED AND ASSIGNED lo Finance and Labor Committee 

Heard in Committee. Speakers; Harvey Rose. Budget Analyst; Steve Kawa, Mayor's Budget Office. 
RECOMMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



000842 [Reserved Funds. Port of San Francisco| 

Hearing to consider release of reserved funds, Port of San Francisco (San Francisco Harbor Operating Funds: 
File 101-96-19, Ordinance No. 470-96), in the amount of $202,900 to fund the Agricultural Building East 
Entry Stair Replacement project. (Port) 
5/2/00, RECEIVED AND ASSIGNED to Finance and Labor Committee 

Heard in Committee Speakers Harvey Rose, Budget Analyst, Veronica Sanchez, Port. 
APPROVED AND FILED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



000629 [Carrousel Fees| 
Supervisor Brow n 

Ordinance amending Part II, Chapter VI of the San Francisco Municipal (ode (Park Code) to set fees for rides 
on the Golden Gate Park Carrousel at S 25 for children and SI .50 for adults, which keeps the fee for children 
at its current level and raises the fee for adults from $1 .00 to SI .50. 

(Amends Section 12. 09) 

4/10/00, ASSIGNED UNDER 30 DAY RULE to Finance and Labor Committee, expires on 5 10 2000 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst. Chris Mack. Recreation and Park Department. 
Supervisor Yee. 

RECOMMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



000851 [Renewal of lease for the City Attorney at Fox Plaza, 1390 Market Street] 

Resolution authorizing a lease renewal for approximately three floors of space at 1390 Market Street for the 
City Attorney for a term of seven years. (Real Estate Department) 
5/3/00, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Harxey Rose. Budget Analyst: Tony DeLucchi. Real Estate Department; 
Supervisor Yee. 

RECOMMENDED by the following Note: 
Ayes: 3 - Yee, Bierman, Ammiano 



City and County of San Francisco 



Printed at 4:48 PM on S/25/00 



Finance and Labor Committee 



Meeting Minutes 



May 24, 2000 



000848 [Lease of the Ingleside Branch Library subject to Conditional Use approval from the Planning 
Department currently being processed] 

Resolution authorizing the lease of real property at 1649 Ocean Avenue for the San Francisco Ingleside 
Branch Public Library. (Real Estate Department) 
5/3/00, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Han>ey Rose, Budget Analyst; Tony DeLucchi, Real Estate Department. 
RECOMMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



000795 [Quitclaim of 36,400 sq. ft. parcel of land that the City holds title as a trustee of the State of California, 
to S.F. Unified School District] 

Resolution approving the transfer of title to the real property located at 1950 Mission Street, San Francisco 
from the City and County of San Francisco to the San Francisco Unified School District. (Real Estate 
Department) 

4/28/00, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Tony DeLucchi, Real Estate Department; Ted 
Lakey, Deputy City Attorney. 
RECOMMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



000601 [Tobacco Settlement - Prevention and Control] 
Supervisor Newsom 

Hearing to consider Proposition A funds for tobacco prevention and control. 

4/3/00, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Ginger Smiley, Department of Public Health; 

Carol McGruder, Tobacco Free Project; Kirk Kleinschmidt, American Heart Association; Pamela Johnson. 

Booker T. Washington Center; Karen Licavoli, American Lung Association; Harvey Rob. 

FILED by the following vote: 

Ayes: 3 - Yee, Bierman, Ammiano 



ADJOURNMENT 



The meeting adjourned at 1:30 p.m. 



City and County of San Francisco 



Printed al 4:48 PM on .V2V00 



o.^ 



If/ CD 



budget Analyst Report] 

Susan Horn 

MainUbrary.Govt.Doc. Sect 



ion 



CITY AND COUNTY 




OF SAN FRANCISCO 



^BOARD OF SUPERVISORS 

BUDGET ANALYST 

1390 Market Street, Suite 1025, San Francisco, CA 94102 (415) 554-7642 
FAX (415) 252-0461 



TO: ^ Finance and Labor Committee 

FROM: ^Budget Analyst 



May 18, 2000 

DOCUMENTS DEPT. 

MAY 2 2 2000 
SAN FRANCISCO 






SUBJECT: May 24, 2000 Finance and Labor Committee Meeting PUBLIC LIBRARY 

Item 1 - File 00-0574 

Note: This item was continued by the Finance and Labor Committee at its meeting 
of May 10,2000. 



Department: 
Item: 



Description: 



Fire Department 

Ordinance amending Part II, Chapter IV, of the San 
Francisco Municipal Code (Fire Code) by amending 
Section 106 to increase fees for services and by amending 
Article 90 to require fire pumps in buildings 200 feet 
(approximately 20 stories) or more in height to be capable 
of operating on emergency power. 

Section 106.18 of the Fire Code requires that the Chief of 
the Fire Department, no later than April 1 st of each year, 
file a report with the Controller concerning "the revenues 
received from each type of fee collected by the Fire 
Department, the costs, both direct and indirect, incurred 
in providing the services for which the fee is assessed, the 
anticipated costs for the ensuing Fiscal Year and the rates 
which would be necessary to support such cost for each 
type of fee." Section 106.18 further specifies that the 
Controller shall file the report with the Board of 
Supervisors by no later than May 15 th of each year, and 
that "the Board of Supervisors shall, by ordinance, 
establish or adjust the rates for any Fire Department 
fees." Section 106.18 also specifies that "The rates set 



Memo to Finance and Labor Commil I 

May 24, 2000 Finance and Labor Committee Meeting 

shall be equal to, but not greater than, the rates 
necessary to support the costs of providing the services for 
which each fee is assessed." 

The proposed ordinance would increase Fire Department 
inspection fees and plan review service fees, as shown in 
Attachments I and II to this report provided by the Fire 
Department, by amount- ranging from a five percent 
increase to a 32.1 percent increase. According to the Fire 
Department, the weighted average of the fee increases is 
six percent. 

Approval of the proposed ordinance would also amend 
Article 90-Standards of the Fire Code by amending 
Section 9001.1.2. which governs requirement.- for water 
supply pumps in buildings 200 feet or more in height 
above the lowest level of Fire Department vehicle access 
(normally, ground level). Section 9001.1.2 currently 
specifies that such buildings shall have a minimum of two 
fire pumps, and further specific- the technical 
requirements of the pumps. The proposed ordinance 
would require that each pump shall be capable of 
operating on emergency power. 

Comments: 1. Assistant Deputy Chief (ADC) Gary Massetani, the 

City's Fire Marshall, reports that the subject fees were 
last increased effective July 1, 1999. Attachment II to this 
report is a memorandum provided by ADC Massetani 
explaining the Fire Department s need to increase fees in 
order to cover the cost of increased Fire Department 
resources already in place. 

2. Mr Joe Matranga of the Controller's Office advises that 
the Controller has reviewed the Fire Department's 
proposed fee schedule for FY 2000-01 and concurs with 
the proposed increase. Mr. Matranga has also stated that 
the Controller has included the fee increases in the Fire 
Department's budgeted FY 2000-01 revenues. As shown 
in Attachment II. the dollar value of the increase in 
revenues due to the fee increase is S384.750. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

2 



Memo to Finance and Labor Committee 

May 24, 2000 Finance and Labor Committee Meeting 



3. ADC Massetani has advised the Budget Analyst that 
the Fire Department is requesting the amendment to the 
water supply pump provision to clarify the intent of the 
Fire Code to that those pumps are capable of operating on 
emergency power. 



Recommendation: Approve the proposed ordinance. 






BOARD OF SUPERVISORS 
BUDGET ANALYST 



Attachment I 



Notes | Section | Description | Existing Fee | Proposed Fee| S Increase | % Increase 



1 


106.3 


Reinspection of Violation 


S62 


S74 


S12 


194 
















2 


106.7 


Consultation Fee 


S56 


S74 


$18 


32 1 
















3 


106.8 


High-Rise Inspection 


5.53/1 000s. f. 


6.00/1000s.f. 


47/1000s.f. 


8.5 
















4 


106.9 


Back Check Plan Review 


n/a 


S52/hr 


n/a 


n/a 


















106.10 


Field Inspection 


S55/hr 


$64/hr 


S9/hr 


16.4 
















5 


106.11 


Pre-Apphcation Meeting 


S92/ 2 hrs 


S104/2hrs 


S12/2 hrs 


13.0 


















106.15 


Overtime 


557/ hr 


570/ hr 


Sl3/hr 


22.8 






. 










6 


106.17 


Waterflow Information 


S23/ flat fee 


526/ flat fee 


53/ flat fee 


130 
















7 


106.17 


Waterflow Hydrant Test 


$92/ flat fee 


S104/ flat fee 


S12/ flat fee 


13.0 
















8 


Table 
106-B 


Plan Review 


n/a 


n/a 


n/a 


5.0 

















# 1 This fee is based upon time required for inspection of property to determine whether 

or not a fire code violation has been abated. 
#2 Consultation Fee is charged for a survey of a building for compliance with applicable 
codes for existing or proposed use. This fee has been raised to conform to violation 
reinspection service fee which is what this service most closely resembles. 

# 3 This fee is charged, as permitted by State law. to recover costs of providing the 

service of annual high-rise building inspections These inspections are mandated by 
the California Health & Safety Code. 

# 4 This is a new fee to recover the cost of providing plan review services when a 

previously approved plan is revised due to conditions in the field, therefore requiring an 
additional plan review. 

# 5 This fee is for meetings requested by designers for plan review services before plans 

are submitted. 

# 6 This fee is for hydraulic information requested by designers, when this 

information is available through documents at the Fire Dept. Plan Check Unit. 

# 7 This fee is charged for hydraulic information when requested by designers This 

fee covers the cost of an actual street hydrant test to provide accurate hydraulic 
information. 

# 8 The increase is based on the projected increase in the cost of providing the 

plan review service. 

The total projected increase in revenue amount to be collected by the Fire Department's 
Bureau of Fire Prevention is S 384.750.00 



Source: S.F. Fire Department 



Attachment II 



Suboject 


Description 


99/00 Budget 


Controller's 
Projected Actual 
99/00 Revenue 


Project FY 00/01 




60667 


Fire Plan Checking 


$ 1,150,000.00 


S 1,271,059.00 


S 1,532,850.00 












60668 


Fire Inspection Fees 


390,000.00 


547,387.00 


600,000.00 












60670 


High Rise Fire Inspection Fee 


622,500.00 


530,673.00 


639,000.00 












60671 


SFFD Tx Coll Renewal Fee 


450,000.00 


453,818.00 


450,000.00 












60672 


SFFD Oring Filing-Posting Fee 


160,000.00 


181,395.00 


160,000.00 












60673 


Fire Code Reinspection Fee 


30.000.00 


22,771.00 


30,000.00 












60699 


Other Public Safety Charges 


40,000.00 


49,997.00 


30,000.00 














Totals 


2,842,500.00 


3,057,100.00 


3,441,850.00 














FY 00/01 Revenue Increase 






384,750.00 













Discription | Cost of Services 



Suboject 



FY 99/00 



FY 00/01 



60667 


Fire Plan Checking 




1,317.515.00 


1,516,836.00 












60668 


Fire Inspection Fees 




572,150.00 


603,636.00 












60670 


High Rise Fire Inspection Fee 




633,078.00 


668,053.00 








. .. 





For Fiscal Year 2000-2001 , these fees were based upon estimated revenues for Fiscal 
Year 1999-2000 with proposed fee increases. 

The purpose of the fee increase is allowed by the California State Government Code to 
support the cost of providing the service for which each fee is charged. 

The projected budget includes an increase in personnel to provide the services for which 
these fees are charged. 



Source: S.F. Fire Department 



Memo to Finance and Labor Commit I 

M,i\ 24, 2000 Finance and Labor Committee Meeting 



Item 2 - File 00-0771 

Department: 

Item: 



Amount: 
Source of Funds: 
Description: 



Assessor's Office 

Ordinance appropriating $315,167 from the General Fund 
Reserve for litigation and mediation expenses associated 
with the Viacom Assessment Appeal for the Assessor's 
Office. 

$315,167 

General Fund Reserve 

The proposed supplemental appropriation request of 
$315,167 would fund legal and related services for the 
assessment appeals process regarding a dispute with 
m Cable, Inc.. th> Cable Television franchisee 

prior to the takeover of Viacom by TCI. which was later 
acquired by AT&T. Viacom initially filed an appeal with 
the Assessment Appeals Board in 1991, contesting both the 
assessed value of Viacom's cable signal distribution system 
and the assessed possessory interest taxes 1 owed by Viacom 
to the City for the years 1987 through 1991. The first 
hearing day for the appeals of the assessed value of the 
cable signal distribution system was in September of 1997. 
The Assessment Appeals Board concluded their hearings on 
the appeal of the assessed value of Viacom's cable signal 
distribution system in 1998. but has not yet issued a 
decision on the appeal. The Assessment Appeals Board 
hearings on Viacom's appeal of the assessed possessory 
interest tax owed by Viacom to .the City is currently in 
progress. According to Mr. Verne Walton of the Assessor's 
Office, Viacom has completed presentation of their case 
before the Assessment Appeals Board but the City has only 
presented about two-thirds of their case. Although Viacom's 
appeal initially included the years 1987 through 1991, the 
appeal now includes the years 1987 through 1995. Mr. 
Walton advises that Viacom has asked for a $23,000,000 
refund in possessory interest taxes paid by Viacom to the 
City between 1987 and 1995. The City has estimated that 
the requested refund should be approximately $12,000,000, 



1 Possessory Interest Taxes are levied on private companies which use publicly owned property. In 
this particular instance, the City assesses possessory interest taxes on Viacom Cable's use of City 
streets and rights of way to provide for the cable company's cable distribution system. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

6 



Memo to Finance and Labor Committee 

May 24, 2000 Finance and Labor Committee Meeting 



plus accrued interest, for excess possessory interest taxes 
paid by Viacom to the City during that time. 
According to Mr. Walton, the Assessment Appeals Board 
has scheduled 19 hearing days from April 1, 2000, through 
June 9, 2000. Mr. Walton advises that the hearings will 
not necessarily conclude by June 9, 2000, and that the 
Assessment Appeals Board will resume such hearings on 
September 15, 2000, if the hearings are not yet concluded. 
However, Mr. Walton states that the City and Viacom have 
agreed to mediation for the period from June 9, 2000, to 
September 15, 2000. If the parties are able to reach 
agreement during the mediation process, then very few 
Assessment Appeals Board hearings will be required 
during FY 2000-2001, according to Mr. Walton. 



Budget: The estimated additional costs for the Viacom assessment 

appeal process are as follows: 

Consultant Expenditures (unpaid expenditures as of March 31, 2000) 

Berliner and Kidder, appraiser of intangible properties $38,712 

Diehl, Evans & Company, LLP, auditor of intangible properties 15,000 

Rutan & Tucker, private attorney representing the City before the 

Assessment Appeals Board 35,000 

Telecommunication Management Corporation, 

Telecommunications economist 37.232 

Subtotal, unpaid consultant expenditures $125,944 

Mediation 100.000 

Appeal Hearings, 22 days @ $5,000 per day 110.000 

Projected 5 extra hearing days for contingency 25.000 

Total, unpaid consultant expenditures and projected costs $360,944 

Remaining balance of prior appropriation as of April 10, 2000 ' (S45.777) 

Total $315,167 

The Budget Analyst has reviewed budget details provided 
by the Assessor's Office, which are discussed in Comment 
No. 4. 

Comments: 1. Mr. Walton states that the Assessor's Office included 

$356,584 in the Assessor's FY 1999-2000 budget to pay for 
the City's expenses in the Viacom possessory interest tax 
appeal before the Assessment Appeal Board. As of April 10, 
2000, the Assessor's Office had expended $310,807 of the 
allocated amount of $356,584, with a remaining balance of 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

7 



Memo to Finance and Labor Committee 

May 24, 2000 Finance and Labor Committee Meeting 



$45,777. Mr. Walton advises that the City owes $125,944 
m already incurred expenses and estimates additional costs 
of $235,000 for Assessment Appeals Board hearings and 
mediation, for a total of incurred unpaid expenses and 
projected costs of $360,944 for FY 1999-2000. The proposed 
ordinance would appropriate $315,167 for the City's 
mediation and legal expenses, which equals incurred and 
projected expenses of $360,944 less the remaining FY 1999- 
2000 appropriation balance of $45,777. 

2. According to Mr. Walton, the Board of Supervisors 
appropriated $356,584 in the Assessor's FY 1999-2000 
budget to fund the costs of the Viacom assessment appeal 
process. In addition, the Board of Supervisors approved 
appropriation of $450,000 in the A FY 1997-98 
budget and $250,000 in the A - FY 1998-1999 budget 
for the Viacom assessment appeal process. Appropriations 
to date total $1,056,584. Therefore, approval of this 
supplemental appropriation of $31o.l(i7 would increase 
that total to $1,371,751. 

3. Mr. Walton states that the Assessor's Office estimates a 
total of $200,000 in expenditures for the mediation process, 
which includes consultant and attorney costs for 
preparation and mediation sessions plus travel expenses. 
The proposed supplemental appropriation includes 
$100,000 for mediation expenses. According to Mr. Walton, 
additional funds in the amount of $100,000 have been 
included in the FY 2000-2001 Assessor's budget for 
mediation expenses. 

4. The proposed supplemental appropriation budget 
includes a total of $135,000 for 27 Assessment Appeals 
Board hearing days (22 Appeals Board scheduled hearing 
days at $5,000 per day, totaling $110,000. plus 5 
contingency hearing days at $5,000 per day, totaling 
$25,000). The Budget Analyst notes that only 19 
Assessment Appeals Board hearing days have been 
scheduled from April 1, 2000. through June 9, 2000. and of 
these 19 hearing days, only 17 hearing days have actually 
occurred or are pending. Additionally, based on 
information provided by the Assessor's Office, the Budget 
Analyst projects that the estimated costs for the 
Assessment Appeals Board hearing days for the period from 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

8 






Memo to Finance and Labor Committee 

May 24, 2000 Finance and Labor Committee Meeting 

April 1, 2000, through June 9, 2000, are approximately 
$6,160 per day ($4,385 per hearing day for attorney costs 
and approximately $1,775 per hearing day for expert 
witness costs). The total cost of 17 Assessment Appeals 
Board hearing days would be $104,720, based on the 
Budget Analyst's projections ($6,160 times 17), which is 
$30,280 less than the budgeted amount of $135,000. 
Therefore, the Budget Analyst recommends a reduction in 
the supplemental appropriation of $30,280, from $315,167 
to $284,887. 

Recommendations: 1. Amend the proposed supplemental appropriation to 
reduce the amount of the General Fund Reserve as a source 
of funds by $30,280 as follows: 



Item 
Funding Source: 



From 



To 



Reduction 



General Fund Reserve 
(Page 1, line 10) 



$315,16' 



$284,887 



$30,280 



Funding Uses: 



Litigation Expenses 
(Page 2, line 4) 



$315,167 



$284,887 



$30,280 



2. Approve the proposed ordinance as amended. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 24, 2000 Finance and Labor Committ. <• Meeting 



Item 3- File 00-0772 



Department: 



Department of Public Work S (DPW) 
Department of Public Health DPH) 
Laguna Honda Hospital (LHH) 



Item: 

Amount: 
Source of Funds: 
Description: 



Supplemental Appropriation for architectural, 
engineering and construction costs for the Laguna Honda 
Hospital Project 

$9,243,481 

Tobacco Settlement Funds 

The proposed supplemental appropriation would provide 
initial funding for the Laguna Honda Hospital 
Replacement Project in the amount of $9,243,481 A 
summary budget for the use of these funds is as follows: 



Architectural and Engineering 

Consultants - Programming and 
Planning Services 

Initial Permits and Agency Review Fees 
Office of Statewide Health 
Planning and Development (OSPHD) 
City Planning 
Department of Building Inspection 

Environmental Review Consultants 



$6,743,481 



1 119,500 

180.000 

500 

900.000 



Total 



$9,243,481 



The attachment to this report is a memorandum that 
provides the DPWs explanation of the amounts requested 
for the $6,743,481 requested for Architectural and 
Engineering Consultants and the $900,000 requested for 
Environmental Review Consultants. The DPW cannot, at 
this time, provide details concerning the Architectural 
and Engineering Consultants and the amounts of the 
respective contracts totalling $6,743,481 as they are 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

10 



Memo to Finance and Labor Committee 

May 24, 2000 Finance and Labor Committee Meeting 



currently evaluating responses to a Request for Proposals 
(RFP) process. 

The attached memorandum notes that total anticipated 
expenditures for such consulting services in support of the 
project are $27,000,000 or approximately 11 percent of the 
total construction costs for the Laguna Honda Hospital 
Replacement Project of $251,000,000. 

DPW has selected consultants for the $900,000 budgeted 
for Environmental Review services shown in the 
summary budget above. According to Ms. Marilyn 
Thompson of DPW, a Request for Qualifications process 
approved by the Civil Service Commission and the 
Human Rights Commission (HRC) has been used to select 
Environmental Review Contactors. 

The firm of Impact Sciences was selected for background 
reports, and draft and final Environmental Review 
Reports. The budget allocation for Impact Sciences is 
$480,000. Subcontract participation by MBE/WBE firms 
has been certified by the HRC at ten percent and ten 
percent respectively, according to Ms. Thompson. 

In addition, the firms of Agua Tierra Associates and 
Weiss Associates has been selected for as needed civil 
engineering and environmental infrastructure reports. 
The budget allocation for such as needed reports is 
$120,000. Participation by MBE/WBE firms has been 
certified by the HRC at 20 percent and 20 percent 
respectively, according to Ms. Thompson. 

The DPW has also allocated $300,000 for borings, 
surveys, materials testing, construction staging and 
access studies according to Ms. Thompson. No contractors 
have been selected to perform these services as of this 
date. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

11 



Memo to Finance and Labor < Committee 

May 24, 2000 Finance and Labor Committee Meeting 

Comments: 1. As reported previously to the Board of Supervisors 

(in June of 1999) the estimated total project cost for the 
Laguna Honda Hospital Replacement Project i- 
$401,000,000. The anticipated sources of funding for the 
total $401,000,000 project would be as follow 

General Obligation Bonds approved by the 

in the November, 1999 general election $299,000,000 

Interest Earned on General Obligation Bonds 21,703,283 

Tobacco Settlement Revenues 

(including interest earnings) 80,296,717 

$401,000,000 

As noted above, total construction contract costs for the 
proposed project are estimated at .i 2." l. 000.000. 

2. The Department of Public Works has requested 
approval of this proposed resolution at this time despite 
the fact that the Architectural and Engineering 
consultants at a total requesl of $6,743,487 have not been 
selected, and a final contract with such consultants will 
not be in place until August of 2000. Normally the Budget 
Analyst would recommend reserving at least a portion of 
this $(i.743,87 request pending submission of cost details. 
However, according to the attached memorandum, DPW 
is concerned that delays will result in construction 
escalation costs amounting to approximately $120,000 
monthly. Because DPW is unable to provide full 
contractor and cost details at this time, and requests that 
no funds be reserved by the Finance and Labor 
Committee, the Budget Analyst considers the proposed 
supplemental appropriation a policy matter for the Board 
of Supervisors. 

Recommendation: Approval of the proposed supplemental appropriation is a 

policy matter for the Board of Supervisors. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

12 




Willie Lewis Brown, Jr., Mayor 
Mark A. Primeau, Architect, A1A, Director 






Attachment 

(415) 554-4830 

FAX (415) 554-7800 

httpi/ rwww.sfdpw.com 

Department of Public Works 

Finance and Budget Division 

Financial Management and Administration 

Ciry Hall, Room 340 

1 Dr. Carlton B. Goodies P;aoe 

San Francisco, CA 94102-4645 

Tina Olson, Drvision Manager 



MEMORANDUM 

Date: May 17,2000 

To: Ken Bruce, Budget Analyst's Office ^ 

From: Tina Olson, Manager of Finance and Budget, DPVv ifs 

Marilyn Thompson, Project Manager, Laguna Honda Hospital Project/ (/nJL 

Subject: Laguna Honda Hospital Project Supplemental Appropnation - 

A&E Consultant Contracts 



In the Laguna Honda Hospital Project supplemental appropriation request pending before 
the Board of Supervisors, we have budgeted 56,743,481 for Architecture and Engineering 
(A&E) consultants for the programming and planning phase of the project. This figure 
represents a portion of the total A&E contract. The A&E contract is anticipated to be in 
excess of S27 million, 1 1% of S251 million, the estimated construction bids. The majority 
of the design effort will occur in the next four years. This supplemental will fund the first 
year. 

The programming and planning phase includes architectural services (programming, 
space planning, site plans, historic preservation studies, massing studies, preliminary 
permit approval documents), engineering services (site analyses, existing utilities 
analyses, utilities planning studies, site plans, structural systems studies, mechanical & 
electrical systems studies), construction documents for the temporary utility plants, and 
reimbursable expenses. 

On January 4, 2000, we issued a Request for Qualifications (RFQ) for the Executive 
Architect We have received three proposals from A&E teams and will be interviewing 
the most qualified teams in June of this year. We anticipate selecting the Executive 
Architect in July 2000 with a contract finalized by August 2000. We need this 
appropriation to certify that contract and begin the programming and planning work on 
the project Conceptual site plans and massing studies are necessary m order to begin the 
draft ETR process this year. This appropriation also includes 5900,000 for EER 
consultants and reports. We are currently finalizing negotiations with the EER consultants 
and require the funds now for the Initial Study and background reports. We are concerned 
thai any delays to receiving this appropriation will result in construction escalation costs 
of $120,000 per month. 



•IMPROVING THE QUALITY OF LIFE IN SAN FRANCISCO' We are dedicated individuals committed to teamwork, 

customer service and continuous improvement in partnership with the community 

Cuaomer Service Teamwork Continuous lmprovemcni 



13 



Memo to Finance and Labor Commit I 

May 24, 2000 Finance and Labor Committee Meeting 



Item 4 - File 00-0773 

Department: 

Item: 



Amount: 
Source of Funds: 
Description: 



( !ity Attorney's Office 

Ordinance appropriating $1,139,504 from the 
General Fund Reserve to fund salaries, fringe 
benefits and professional and expert services for 
litigation of San Francisco Business Tax cases. 

$1,139,504 

General Fund Reserve 

The proposed ordinance would appropriate 
$1,139,504 from the General Fund Reserve to pay 
for the litigation expenses of the City Attorney for 
the lawsuit filed against the City by General 
Motors Corp., Eastman Kodak Co., and five other 
corporate plaintiffs pertaining to the imposition of 
the City B Business Taxes. In a summary judgment 
decision issued on May 16. 2000, the Superior 
Court ordered the City to refund more than 
$250,000 in taxes to General Motors and Eastman 
Kodak. According to Mr. Kim Manolius of the City 
Attorneys Office, the City will appeal this decision 
to the State's First District Court of Appeals. Mr. 
Manolius advises that this appeals process is 
expected to take approximately 12 to 18 months. 

Mr. Manolius states that five trial dates have been 
set between August and November of 2000 for the 
five additional corporate plaintiffs that have filed 
suit against the City's imposition of Business 
Taxes. Additionally. Mr. Manolius advises that 
approximately 100 additional businesses have filed 
claims against the City regarding the City's 
imposition of Business Taxes. 

The proposed supplemental appropriation of 
$1,139,504 was based on the City Attorney's cost 
estimates if the lawsuit filed against the City by 
General Motors and Eastman Kodak had gone to 
trial on May 30, 2000, as originally scheduled. Mr. 
Manolius advises that, because of the Superior 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

14 



Memo to Finance and Labor Committee 

May 24, 2000 Finance and Labor Committee Meeting 



Budget: 



Court's recent decision in favor of General Motors 
and Eastman Kodak, the City will not go to trial 
but will instead appeal the summary judgment 
decision to the First District Court of Appeals. 1 Mr. 
Manolius states that the projected costs of the 
appeal process are less than if the City were to go 
to trial. Therefore, the City Attorney's Office has 
presented revised cost estimates for the requested 
supplemental appropriation (see Comment No. 3). 

The summary budget for the proposed 
supplemental appropriation is as follows: 

City Attorney Costs 

Permanent Salaries $294,346 

Fringe Benefits 76,983 

Other Current Expenses 81,510 

Subtotal, City Attorney $452,839 

Contractual Cost 

Private Attorney 585,261 

Expert Witness 70,000 

Litigation Expenses 31,404 

Subtotal, Contractual Cost 686.665 



Total 



$1,139,504 



Comments: 



1. According to Mr. Manolius, the five Deputy City 
Attorneys generally assigned to handle City tax 
matters have been allocated full-time to the subject 
Business Tax case, and as such, their costs on this 
case are already included in the FY 1999-2000 
budget. Additionally, four Deputy City Attorneys 
and one Investigator assigned to other non-General 
Fund projects have been re-allocated to the subject 
Business Tax case. Mr. Manolius states that, 
because the General Motors and Eastman Kodak 
cases were not filed until April and June of 1999 
respectively, General Fund monies were not 
appropriated in the FY 1999-2000 City Attorney 
budget to pay the expenses of these additional five 



1 The Superior Court decision that was handed down on May 16, 2000, was in response to motions for 
summary judgment filed by the City and by the plaintiffs. General Motors and Eastman Kodak. According 
to the City Attorney's Office, the order handed down by the Superior Court, in response to the motions for 
summary judgment, precludes the parties going to trial. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

15 



Memo to Finance and Labor Commit!' se 

May 24, 2000 Finance and Labor Committee Meeting 

staff. Overall the five staff represent 2.95 1 
Deputy City Attorney and 0.75 FTE Investigator 
positions, for a total amount of $406,620, which has 
been included in the City Attorney's revised 
budget. Attachment 1, provided by the City 
Attorney's Office, contains details for the additional 
City Attorney's Office expenses, including expenses 
of $266,560 incurred as of April 30, 2000, and 
projected expenditures of $140,060 through June 
30, 2000, totaling $406,620. 

2. Mr. M.inolius reports that the City has hired 
outside private attorney- and tax experts on a sole 
source basis because of their expertise in both 
business and tax law to assist with the litigation 
againsl the City's Business T m. According 
to the City Attorney's Office, expenditures for these 
private attorneys and tax experts, including 
associated litigation expenses, total $565,592. 
Attachment II, provided by the City Attorney's 
Office, contains details fur these consultant and 
attorney expenses, including expenses incurred as 
of March 31, 2000 of $228,580 and projected 
expenditures through June 30, 2000 of $337,012, 
totaling $565,592. 

3. The revised budget for this supplemental 
appropriation is $972,212. which is $167,292 less 
than the original budget of $1,139,504. Therefore, 
the Budget Analyst recommends reducing the 
supplemental appropriation by $167,292, from 
$1,139,504 to $972,212. The revised budget is as 
follows: 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

16 



Memo to Finance and Labor Committee 

May 24, 2000 Finance and Labor Committee Meeting 

Proposed 



Citv Attorney Costs 




Permanent Salaries 


$294,346 


Fringe Benefits 


76,983 


Current Expenses 


81.510 


Subtotal, City Attorney 


$452,839 


Contractual Cost 




Private Attorney 


585,261 


Expert Witness 


70,000 


Litigation Expenses 


31.404 


Subtotal, Contractual 


$686,665 


Total 


$1,139,504 



vised 


Differenc 
e 


$264,302 


$30,044 


69,126 


7,857 


73.192 


8.318 


$406,620 


$46,219 


499,592 


85,669 


51,000 


19,000 


15.000 


16.404 


$565,592 


$121,073 



$972,212 $167,292 



4. Mr. Manolius advises that the Tax Collector's 
Office has included $1,038,182 in the proposed Tax 
Collector's FY 2000-2001 budget to cover the costs 
of the Business Tax litigation during FY 2000- 
2001, and that the City Attorney's Office would be 
reimbursed by the Tax Collector's Office on a work- 
order basis. The Budget Analyst's Office will 
review those costs during the FY 2000-2001 budget 
review in June of 2000. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

17 



Memo to Finance and Labor Committee 

May 24, 2000 Finance and Labor Committee Meeting 

Recommendation: 1. Amend the proposed supplemental appropriation 

to reduce the amount of the General Fund Reserve 
as a source of funds by $167,292 from $1,139,504 to 
$972,212, as follows: 



Item 



From 



To 



Reduction 



Funding Source: 



General Fund Reserve 
(Page 1, line 13) 



$1,139,504 



$972. :M - 



$167,292 



Funding Uses: 
Permanent Salary 



(Page 1, line 19) 


$294,346 


$264,302 


$30,044 


Mandatory Fringe 

Benefits 

(Page 1, line 21) 


$76,983 


$69,126 


857 


Other Current Expenses 
(Page 1, line 23) 


$81,511 


$73,192 


$8,318 



Litigation Expenses 
(Page 2, line 1) 



$686,665 $565,592 $121,073 

'1 Approve the proposed ordinance as amended. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

18 



Attachment 



Tax Litigation Budget 

City Attorney Detail 

FY 1 99S-2000 

REVISED 

Wks % Time Krs Rate Amount 

Through 4/3072000 1972 3256,550 

5121-5 CLEO 9 20% 30 515c $12,540 

8180-4 GUIN3/6t 9 100% 4Q0 3144 S57.500 

21 30-4 MART 3/6 9 50% 240 S144 334,550 

2178-6 CHEA 3/6 9 4Q% 150 3136 321,760 

Paralecal 9 75% 270 S50 S13.500 



CATTY i otate FY 1999-2000-,; 3252 S406.520 

% of rate calc 

atty sai 0.44 S178.913 

any frg 0.09 S36.596 

other sai 0.21 S25.390 

other r'rg 0.03 332,530 

othcurrex 0.13 S73.192 

lit cost SI 5,000 

o/s cost S 550 . 592 

5-05,520 3555. 592 3372,21: 

001 00100 S254.302 

013 019C0 369,125 

021 03500 S73.192 

050 05321 3555,592 

2972,212 



Attachment provided by the City Attorney's Office 



5/ ' ; ' /oc 19 7axi:ts x:s Car- 



Attachment II 



Tax Litigation Budge! 

FY 1999-2000 

REVISED 



Clarence & Snell 


Billing 


Rates 








Karen Snell 


S 


275 


90% 


S 


243 


Nancy Clarence 


s 


275 


90% 


S 


248 


Kate Dyer 


s 


185 


90% 


S 


167 


Erika Franklin 


s 


125 


90% 


: 


122 



2 ',2000 to 3/31/2000 

Actual 

4/1/2000 to 5,15/2000 = 7.5 weexs 

Snell 

Clarence 

Dyer 

Franklin 

Subtotal 

00 to 6/30/2000 = 6.5 weeks 

Snell 

Clarence 

Dyer 

Franklin 

Subtotal 



22.530 



■irs City Fate Weekly Amt Weeks 

25 S 2*8 S 8.562 

8 S 248 S 1.980 

25 S 167 S 5.823 

20 S 122 S 3.545 

S 20.115 7.5 



S 150.363 



Hrs City Rate Weekly Amt Weexs 
20 S 248 S 4.950 

8 S 248 S 

20 3 157 5 

10 S 122 S 

S 



1.S8C 

3.230 

1.215 

11.475 



45.900 



Clarence & Snell Total to 6/30/2000 



: 425 342 



Richards Watson & Gersnoan Billing Rate 

Micnael Coiontuono S 275 90% S 248 



Revise i ax Code 
Litication Matters 



200 S 243 S 49.500 
100 S 243 S 



Richards Watson & Gershoan Total to 6/30/2000 






■ ax rjoerts 

Jesse Chooer. Boall Hall 
Micr.ae! Potepan. S F. State 
Allen Averbach, Economist 



25 
72 

2C 



500 S 18.000 

250 S 18.000 
500 S 15.000 



Tax Experts Total to 6/30/2000 

Costs (i.e. copies, reporters, etc) 

Total Outsiae Counsel/Experts to 5/30/2000 

CATTY Totals FY 1999-2000 see attached oreakacwn) 

Total Special Counsel and CATTY FY 1S99-2000 



s 


£1.000 


s 


15.000 


3 


£€£.£92 


c 


405.520 



Attachment Drovide 



d bv the Citv Attorney's Office 



5/1 DC 



9n 



Tax:i;s x:s - . 



Memo to Finance and Labor Committee 

May 24, 2000 Finance and Labor Committee Meeting 

Items 5 and 6 - Files 00-0774 and 00-0787 






Department: 
Items: 



Sheriffs Department 

Item 5, File 00-00774: Supplemental Appropriation 
Ordinance appropriating 2,142,114 from the General 
Fund Reserve, $2,500,000 from the Jail Overcrowding 
Reserve, $9,820 from State Mandated cost revenues, and 
$250,000 from City Hall Special Event revenue, for a total 
of $4,901,934 to fund (1) budgetary shortfalls in overtime 
and workers compensation, (2) new computer equipment 
and services and an information systems consultant; (3) 
residential substance abuse treatment beds, and (4) 
funding for a new Deputy Sheriff position. 

Item 6, File 00-0787: Ordinance amending the 1999- 
2000 Annual Salary Ordinance to reflect the creation of 
one new position in the Sheriffs Department. 



Amount and 
Source of Funds: 



General Fund Reserve $2, 142, 114 

Reserve for Jail Overcrowding 2,500,000 

City Hall Special Event Revenue 250,000 

State Mandated Cost Revenues 9,820 

Total Supplemental Appropriation Request $4,901,934 



Budget: 



The requested budget of 
follows: 



,901,934 would be used as 



Budget Shortfalls 

Overtime $3,304,981 

Workers Compensation 350,000 

53,654,981 
Computer Equipment and Information Systems Consultant 

New Servers for Defendant Tracking System $127,685 
Interface with external computer systems 55,448 

Information systems contract project 

manager 354,000 



Residential substance abuse treatment beds 
One month costs for a new Deputy Sheriff position 
Salaries $5,200 

Benefits 1,120 

Materials and supplies 3,500 



$537,133 
$700,000 



Total Requested Funds 



$9.820 
$4,901,934 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 24, 2000 Finance and Labor Commit tee Meeting 

Description: The proposed supplemental appropriation ordinance (File 

00-0774) would appropriate $2,142,114 from the General 
Fund Reserve. $2,500,000 from the Reserve for Jail 
Overcrowding, $250,000 from City Hall Special Event 
revenue, and $9,820 from State Mandated Cost Revenues 
to fund (1) budgetary shortfalls in overtime and workers 
compensation (2) computer equipment and software for 
the new Defendant Tracking System and a project 
management contractor to oversee development of the 
new computer system (3) additional residential substance 
abuse treatment program beds, and (1) approximately one 
month's costs for a new Deputy Sheriff position who 
would be responsible for collection and reporting of 
information regarding DNA samples taken from 
isoners in compliance with a new State law 

The proposed ordinance (File 00-0787) would amend the 
Annual Salary Ordinance to reflect the creation of one 
new position, as folio.' 

of Pi' 99-00 Biweekly Annual 

Positions FTE Class Title Salary Salary 

1 0.09 8304L Deputy Sheriff (1,682 - $2,043 S43.900-53.322 

Besides annual salary costs ranging from $43,900 to 
$53,322. fringe benefits would range from $8,145 to 
$9,771 for a total annual cost ranging from $52,045 at 
Step 1 to $63,093 at Step 5. 

Budget Shortfalls: Overtime and Workers 
Compensation ($3,654.981) 

The Department is requesting $3,304,981 of the proposed 
supplemental appropriation for a deficit in overtime 
expenditures and $350,000 for a deficit in workers 
compensation costs. 

Overtime 

The Department's overtime budget for FY 1999-2000 is 
$1,184,546. Actual expenditures through the pay period 
ending April 28. 2000 were $5,188,424. or $4,003,878 over 
the amount budgeted. The Department projects that it 
will expend $1,057,500 more in overtime by the end of the 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 24, 2000 Finance and Labor Committee Meeting 



1999-2000 fiscal year, resulting in total overtime 
expenditures of $6,245,924 for the entire year. Total 
projected overtime expenditures for FY 1999-2000 of 
$6,245,924 is $5,061,378, or 427 percent, more than the 
$1,184,546 budgeted. The amount requested for overtime 
in this supplemental appropriation is $3,304,981, or 
SI, 756,397 less than the projected overtime deficit of 
$5,061,378. The difference will be offset by savings in 
other salary and mandatory fringe benefits accounts such 
as permanent salaries and retirement contributions. 

The Sheriffs Department attributes its excess overtime 
expenditures to a number of causes including: 

1. Hiring 110 new positions this Fiscal Year, all of whom 
attended training of up to six months during which 
time some of their future posts were filled by existing 
staff on overtime. 

2. A higher than expected turnover rate resulting in the 
use of overtime to fill vacated posts. 

3. Insufficient staff for the number of posts assigned to 
City Hall security, resulting in the use of overtime to 
fill those posts. 

4. Jail population increases and overcrowding. 

The Department hired 110 new employees this year, 
filling many of the Deputy Sheriff positions that were 
vacant in FY 1999-00. Currently, there are only four 8304 
Deputy Sheriff positions vacant out of the 623.25 
positions authorized, according to Ms. Jean Mariani of the 
Sheriffs Department. At the start of FY 1999-2000, there 
were 95 vacancies in the Department Ms. Mariani 
reports. 

When hired, each Deputy Sheriff position is required to 
complete a seven week core training program before 
starting work in the jails or other posts and another five 
to six months worth of training within eighteen months of 
being hired. During the training period, the new Deputy 
Sheriffs are paid but are not available to perform their 
regular Deputy Sheriff duties. If their future assignment 
is one that must be performed every day (i.e., a fixed 
post), it is filled by another Deputy Sheriff on overtime 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committer 

May 2 1. 2000 Finance and Laboi Committee Meeting 



while the new hire is in training. Ms. Mariani reports that 
the Department knew that the overtime appropriation in 
the Mayor's 1999-2000 budget was not going to be 
sufficient given the number of new hires planned. 

The Department added City Hall security to it- functions 
in FY 1998-1999 and 41 new positions since then to 
perform this function According to the Sheriff, the 
staffing added is not Bufficienl to cover all of the posts 
contained in the Department's City Hall security staffing 
plan so some of the posts are regularly filled by staff on 
overtime. The Department estimates thai 1 of the 

$5,184,154 m overtime expenditures through April 
2000 is attributable to covering City Hall security posts. 
The budget for City H.ill security overtime for FY 1999- 
2000 was $112,550. The $823,504 expended on overtime 
for City Hall security as of April 28, 2000 is $710,954, or 
over 631 percent more than the amount budgeted for the 
year. 

Through May 13, 2000, turm he Department- 

sworn personnel was 9.1 percent in FY" 1999-2000 as 
compared to 6.5 percent the previous Fiscal Year. The 
increase in turnover is largely attributable to the lateral 
transfer of 23 8304 Deputy Sheriff positions to the San 
Francisco Police Department. Without these departures, 
the Departments attrition rate would have been 6.4 
percent or almost the same as the previous fiscal year's 
6.5 percent. To the extent that the positions transferring 
to the Police Department filled fixed posts, those posts 
have been filled by remaining sraff on overtime until the 
vacant positions are replaced by new employees. 

The population of the jails has averaged 2,709 so far in FY" 
1999-2000, a 3.4 percent increase from the average for the 
second half of FY' 1998-1999 of 2,621. The additional 
population puts pressure on jail staffing as additional 
Deputy Sheriff time is needed for functions such as 
prisoner transportation to courts and medical care. 

Other than City Hall security, the Department is not able 
to quantify how much of its overtime expenditures are 
attributable to each of the explanations discussed above. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

24 



Memo to Finance and Labor Committee 

May 24, 2000 Finance and Labor Committee Meeting 



However, the Department does generate a number of 
overtime usage reports that identifies overtime costs b\ T 
division and provides some explanations (such as 
overtime for meeting minimum staffing requirements). 

The overtime report by division shows that approximately 
56 percent of all overtime expenditures through the end of 
May was attributed to the jails. City Hall security 
comprises 16.7 percent and the courts another 9.5 
percent. The table below shows the distribution of actual 
overtime expenditures through April 28, 2000 by division 
or cost center for 92.2 percent of total overtime 
expenditures. The remaining 7.8 percent, or $398,459 is 
distributed in small amounts between 17 divisions or cost 
centers of the Department, with an average overtime 
expenditures of $23,439 per division or cost center. 





Expenditures 


% 




as of 4/28/00 


Total 


City Hall Security 


S55.216.84 


16.7% 


County Jail 1 


668,865.04 


13.1% 


County Jail S 


596,104.78 


11.6% 


Courts 


487,662.15 


9.5% 


County Jail 2 


457,248.39 


8.9% 


County Jail 7 


392,084.98 


7.7% 


County Jail 9 


360,024.50 


7.0% 


County Jail 3/Besk case 


423,363.75 


8.3% 


Classification 


149,160.44 


2.9% 


Ward 7D @ SFGH 


102,438.04 


2.0% 


Station Transfer 


99,892.80 


1.9% 


Training 


72,329.27 


1.4% 


Alternative programs 


61,980:00 


1.2% 


Other cost centers 


398.459.78 


7.8% 


TOTAL 


$5,124,830.76 


100.0% 



Note: Total varies slightly from earlier stated overtime amount as of 
4/28/00 of $5,184,154 because they are taken from two different 
Sheriffs reports. 

The Department's overtime expenditures in FY 1998-1999 
were $3,340,402 compared to an original budget of 
$1,150,981. The projected total overtime expenditures of 
$6,245,924 for FY 1999-2000 represent an increase of 87 
percent over actual FY 1998-1999 expenditures. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

2S 



Memo i" Finance and Labor Committee 

Mi\ 2 1. 2000 Finance and Labor Committee Meeting 

Workers Compensation 



The Sheriffs Department is requesting $350. (too for 
workers compensation as part of this supplemental 
appropriation request. The Department's workers 
compensation budget for FY 1999-2000 18 $1,000,070. The 
Department of Human Resources reports that the 
Sheriffs Department's expenditures through the end of 
April. 2000 wen $1,157,282. Projected spending for the 
balance of the year is estimated to be $399,244, resulting 
in total expenditure- >56,456 more 

than the budgeted amount "f SI, 000, 070, according to the 
Department of Human Resources. 

The Sheriffs Department anticipates that the $556,456 
needed will be reduced by $239,822 through a 
reimbursement from the Trial Courts for court security 
services provided by the Sheriff, resulting in a net 
increa of $316,634, as foil 

Actual and projected Sheriffs Department workers 
compensation expenditures FY 1999-2000 as 
reported by the Department of Human Resources 



10 months actual expenditures 


SI, 157,282 


Plus projected expenditures last 2 month.- 


399.244 


Total projected expenditures 


1,556.526 


Less amount budgt 1 


1,000,070 


Less projected Trial Court reimbursement 


239.822 


Net shortfall 


S3 16,634 



Projected FA' 1999-2000 expenditures of $1,556,516 
represents a 25.8 percent increase over FA' 1998-1999 
expenditures of $1,237,086. The Department of Human 
Resources states that the shortfall is due to 
underbudgeting in the current year and higher costs 
associated with a catastrophic injury. 

2) Computer Equipment and Information Systems 
Contractor ($537.133) 

These funds are requested to pay for two new servers for 
the Department Tracking System, interfaces between the 
Defendant Tracking System and State and Federal and 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

26 



Memo to Finance and Labor Committee 

May 24, 2000 Finance and Labor Committee Meeting 



proprietary computer systems, and a contract project 
manager to oversee development of the Defendant 
Tracking System. The amounts requested for each 
component are as follows: 

Distribution of costs for new computer equipment 
and project management contractor 



New servers for Defendant Tracking System 


$127,685 


Interfaces with external computer systems 


55,448 


Information systems project management 




contractor 


354.000 


Total 


$537,133 



The Department reports that the Defendant Tracking 
System currently under development will replace the 
Court Management System (CMS), the core system now 
supporting all of the City's criminal justice operations. 
The new Defendant Tracking System will be part of a new 
City-wide replacement system. The Department reports 
that its two existing servers are not adequate for the new 
system and is requesting two new servers at a cost of 
$127,685 (2 servers x $58,841 each plus sales tax for a 
total of $127,685). The new servers are IBM RISC 6000 
Model F50s according to Ms. Mariani, and have faster 
processing speed and greater capacity than the current 
servers. Full implementation of the new Defendant 
Tracking System is scheduled for June, 2000. 

As part of the new Defendant Tracking System, the 
Department is also requesting funds to purchase software 
that will enable interfaces between the new system and 
CABLE, a State and federal criminal justice data system, 
and Printrak, a proprietary criminal justice photo 
identification system. Funding is also requested for 
licenses for 100 workstations for this new software. The 
cost for new software and licensing will be $55,448 
according to the Department. 

The final component of the Department's information 
technology request is $354,000 for a work order to the 
Department of Telecommunications and Information 
Systems (DTIS) for a contract project manager to oversee 
development of the Defendant Tracking System. Most of 
BOARD OF SUPERVISORS 
BUDGET ANALYST 
27 



Memo to Finance and Labor Committee 

May 24, 2000 Finance and Labor Committee Meeting 



this request is retroactive as the contractor has been 
working for the Sheriffs Department since late July of 

1999. He has worked 1,789 hours through April of this 
fiscal year and is expected to expend 425 more hours by 
the end of the Fiscal Year for a total of 2,214 hours. At the 
contractor's hourly rate of $160, this will result in total 
costs of $354,240 for the contractor's services in FY 1999- 

2000. An additional six months' funding for this position 
will be requested in the Department's FY 2000-2001 
budget, according to Ms. Manani. 

Ms. Mariani reports that the contractor is hired through 
TechProse, a firm under contract to DTIS to provide a 
variety of information systems consulting services on an 
as needed basis. The individual contractor working for the 
Sheriffs Department was initially recommended to the 
Sheriffs Department by DTIS to prepare the Sheriff- 
information systems strategic plan, according to Ms. 
Mariani, and was added to an existing agreement DTIS 
had with TechProse. She reports that after starting that 
engagement, he was asked to discontinue that work by 
the Sheriffs Department and to instead serve as project 
manager for the development and implementation of the 
Defendant Tracking System. The contract for this latter 
service was not competitively bid because the Sheriffs 
Department believed that the TechProse contractor hired 
to prepare the strategic plan was well qualified for this 
second engagement and that TechProse was already 
engaged by DTIS for work on other criminal justice 
information systems projects. 

Since August of 1999 the contractor has worked an 
average of 196 hours per month, or the equivalent of nine 
hours for every business day and every holiday between 
August 1999 and April 2000 at an hourly rate of $160. 
Based on just an eight hour day, his fees would be $1,280 
per day. The Department reports that the contractor does 
not work even' business day and holiday but often works 
several days per week for more than eight hours a day to 
facilitate communications with Department staff working 
on swing and midnight shifts. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

28 



Memo to Finance and Labor Committee 

May 24, 2000 Finance and Labor Committee Meeting 



3) Residential substance abuse treatment beds 
($700,000) 

The Sheriffs Department is requesting $700,000 for 
additional residential substance abuse treatment beds. 
The Department reports that its FY 1999-2000 budget for 
these programs is $1,456,800 for the use of up to 119 
residential drug treatment beds per day. This represents 
an increase in funding compared to FY 1998-1999 when 
funding was initially provided for 32 beds per day and 
then increased to up to 100 per day through a 
supplemental appropriation. 

Total spending for residential drug treatment for the first 
ten months of FY 1999-2000 was $1,688,325 and the 
Department projects additional expenditures of $435,418 
for the balance of the fiscal year resulting in total 
expenditures of $2,123,743. With a FY 1999-2000 budget 
of $1,456,800, the projected expenditures will result in a 
deficit of $666,943 for the year, as follows: 

Sheriffs Department estimates of residential drug 
treatment program budget shortfall 



10 months actual expenditures FY 1999-2000 $1,688,325 
Plus projected expenditures last 2 months 

FY 1999-2000 435.418 

Total projected expenditures FY 1999-2000 2,123,743 

Less amount budgeted FY 1999-2000 - 1,456.800 

Department's projected net shortfall FY 1999-2000 $666,943 



The Department used an average of 94 beds per day at an 
average cost of $58.83 for the first ten months of FY 1999- 
2000. The beds being used every day for residential drug 
treatment represents approximately 3.5 percent of the FY 
1999-2000 average daily total prisoner population of 
2,709. The increased use of residential drug treatment 
programs is due to an increase in the jail population 
according to the Sheriffs Department that was not 
foreseen at the time that FY' 1999-2000 budget was 
prepared. Ms. Mariani points out that the costs for these 
beds is lower than the cost of sending a prisoner to an out 
of County facility where the average cost would be 
approximately $74 per day. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

29 



M' mo to Finance and Labor Commil 

May 24, 2000 Finance and Labor Committee Meeting 



4) New Deputy Sheriff position ($9.820) 

This amount is requested for a new 8304 Deputy Sheriff 
position that would be responsible for State-mandated 
DNA sample collections. AB 1332, which took effect in 
January 2000 requires local jurisdictions to collect DNA 
samples from persons convicted of certain crimes such as 
homicide, sexual assault, and other serious crimes. The 
requested funds would pay salaries, fringe benefits for 
approximately one month of FY 1999-2000. The costs for 
uniforms and a radio are also included in this requi 
Annual salary and mandatory fringe benefit costs for this 
new position would be (52,045 at Step 1 and $63,093 at 
Step 5. 

The Department reports that this function has never 
been performed by the Department to date and could not 
be absorbed as part of the duties of any existing staff 
members. The Department expects that the costs of this 
position will In- fully reimbursed by State SB 90 monies. 
Details of the requested costs are as follows. 



Sheriffs Department's estimates of costs for 
approximately one month of a new DNA Deputy 
Sheriff position for FY 1999-2000 



Base salary 


$4,905.79 


Plus POST pay 


294.35 


Total pay 


5.200.14 


Plus mandatory fringe benefits 


1.121.37 


Plus initial uniform/radio costs 


3.500.00 


Total annual costs 


S9.821.51 



Comments: 



Of the $4,901,934 requested by the Department. 
$3,494,309, or approximately 71 percent of the 
supplemental appropriation amount requested, has 
already been expended as of April 28, 2000. This 
leaves SI. 407. 625 as prospective expenditures for FY 
1999-2000. as follows: 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

30 



Memo to Finance and Labor Committee 

May 24, 2000 Finance and Labor Committee Meeting 



Distribution of supplemental appropriation 
request amount between actual and projected 
expenditures 





Already 


Dept's. 






expended 


projected 






(4/28/00) 


expenditures 


Total 


Overtime 


$2,819,332 


$485,649 


$3,304,981 


Workers compensation 


157,212 


192,788 


350,000 


Computer equipment and software 





183,133 


183,133 


Computer System contractor 


286,240 


67,760 


354,000 


Residential substance abuse services 


231,525 


468,475 


700,000 


New Deputy Sheriff position 





9,820 


9.820 


Total 


S3.494.309 


$1,407,625 


$4,901,934 



The projected balance of $1,407,625 is comprised of 
overtime, workers compensation, residential substance 
abuse treatment, computer system, computer system 
contractor, and new Deputy Sheriff position 
expenditures projected by the Department for the last 
two months of FY 1999-2000. 



2. The Sheriffs Department cannot fully explain its 
continually increasing overtime costs. As mentioned 
earlier in this report, total overtime costs for FY 1998- 

1999 were $3,340,402. Projected overtime costs for FY 
1999-2000 are $6,245,924, or 87 percent more than 
actual FY 1998-1999 expenditures. Actual FY 1999- 

2000 expenditures through the pay period ending April 
28, 2000 were $5,188,424, or $4,003,878 over the 
amount budgeted. The Department projects that it will 
expend $1,057,500 more in overtime by the end of FY 
1999-2000, resulting in total overtime expenditures of 
$6,245,924 for the entire year. This amounts to 
$5,061,378, or 427 percent more than the $1,184,546 
budgeted for overtime in the Sheriffs FY 1999-2000 
budget. 

While the high rate of new hires in FY 1999-2000 
appears to have been part of the cause of increased 
overtime expenditures so far this fiscal year, overtime 
costs are not declining now that most of the new 
Deputy Sheriffs have completed their training and 
have been assigned to duty. In addition, new hires are 
mostly filling positions that were vacant for most of FY 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

31 



Memo to Finance and Labor Committee 

May 24, 2000 Finance and Labor Committee Meeting 



1998-1999. It would thus be logical to conclude that 
the fixed posts that are being staffed by new hires this 
Fiscal Year should also have been covered by overtime 
last Fiscal Year since many of the positions oiling 
those posts were vacant. On that basis, the disparity 
in overtime costs between the two fiscal years should 
not be so great 

Another variable cited by the Sheriffs Department in 
explaining its high overtime costs is jail population 
growth and overcrowding While the jail population is 
over the capacity rated for the City's jail facilities, the 
average daily jail population in FY 1999-2000 as of 
April 2000 is only 2.3 percent greater than it was in 
the second half of FY 1998-1999. Because growth has 
not been significant, this also does not explain the 
growth in overtime costs between the current and 
previous Fiscal Year. 

Turnover has been higher than expected this Fiscal 
Year due to a number of Deputy Sheriffs taking 
lateral transfers to the Police Department, but most of 
these transfers have occurred in just the last month so 
this factor would be limited in explaining overtime 
costs throughout the year. 

The Sheriffs Department overtime tracking system 
tracks dollars spent on overtime by division or cost 
center and by some reasons for overtime. It does not 
provide management with a sufficient level of detail on 
the reasons for approved -overtime. Without this 
information. Department management is at a 
disadvantage in addressing and minimizing these 
costs. Such a tracking and reporting system should be 
implemented by the Department so that upper 
management is aware of why overtime is occurring 
and can take actions to reduce overtime costs. 

Without sufficient explanation for the increase in 
overtime already incurred and projected for FY 1999- 
2000 compared to FY" 1998-1999, the Budget Analyst 
believes that the requested supplemental 
appropriation amount should be reduced to a level 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

32 



Memo to Finance and Labor Committee 

May 24, 2000 Finance and Labor Committee Meeting 



commensurate with actual expenditures in FY 1998- 
1999 since most new hires have now been assigned to 
fixed post duty. Using average actual expenditures 
from the last four pay periods of FY 1998-1999, 
adjusted by 6 percent for increases in salaries, the 
amount requested for overtime could be reduced by 
$140,179, as follows: 



Average overtime expenditure May - June, FY 

1999-00 $203,849 



Projected expenditures for May - June FY 1999- 

2000 using average FY 1998-1999 amounts 

adjusted for salary increases (4.5 pay periods) 917,321 

Amount needed projected by Sheriff for May - 

June 2000 1.057.500 

Difference $140,179 



]. One component of the $6,224,945 in projected overtime 
expenditures for FY 1999-2000 is overtime 
expenditures in excess of the amount budgeted for City 
Hall security. $112,550 was budgeted for City Hall 
security for FY 1999-2000 and as of April 28, 2000, 
$823,504 has been expended for this purpose, which is 
$710,954 or over 631 percent more than the budgeted 
amount. The reason for excess overtime expenditures 
in this area is that there are not enough authorized 
positions to fill all of the fixed posts that the Sheriffs 
Department has assigned to City Hall security. The 
Department will continue to incur overtime to fill its 
City Hall security posts unless more positions are 
added for this function or -a new staffing plan is 
designed for the function. 

An analysis conducted as part of the Budget Analyst's 
review of the Sheriffs proposed FY 1999-2000 budget 
showed that all City Hall security stations could be 
covered with fewer fixed posts than the Sheriff has 
assigned to this function. It would require not having a 
third Deputy assigned to each station to cover the two 
lunch hours and breaks when there are two other 
deputies assigned to a station. If this Sheriffs 
department used floater positions to cover breaks, 
such a plan would be feasible. The Budget Analyst has 
observed on occasion that there are three or four 
BOARD OF SUPERVISORS 
BUDGET ANALYST 
33 



Memo to Finance and Labor Committee 

May 24, 2000 Finance and Labor Committee Meeting 



Deputy Sheriffs and Cadets at the Grove Street 
entrance to City Hall at one time. 

4. The $350,000 workers compensation portion of the 
proposed supplemental appropriation is $33,366 more 
than the amount needed for the remainder of this 
fiscal year as projected by the Department of Human 
Resources. Therefore, the amount requested could be 
reduced. The Budget Analyst recommends a reduction 
of half the excess amount, or $16,700 to allow some 
extra funds in the event that actual costs vary from 
the Department of Human Resources projections for 
FY 1999-2000. 

5 A review of the City's contract with TechProse, the 
contract firm retained to serve as project manager for 
development and implementation of the Defendant 
Tracking System revealed that there are no set hours 
or costs for the contractor for this engagement. 
Instead, his work is folded into a contract for a larger 
project being conducted by the firm for the City with a 
maximum cost of $1,654,000. The contractor has 
worked 1,789 hours between July 1999 and April of 
this year. He is expected to work 425 hours more 
before the end of the Fiscal Year for a total of 2,214 
hours. At an hourly rate of $160. total fees for this 
contractor will be $354,240 for Fiscal Year 1999-2000. 
This equates to an average of 196 hours per month, or 
nine hours per day for every business day and holiday 
between August 1999 and April 2000. 

The contract includes a number of tasks to be 
performed by the firm including those being performed 
for the Sheriff but does not specify who will be 
performing them or at what cost. Since the 
engagement for the Sheriff was added to an existing 
DTIS contract with TechProse through a contract 
amendment, one can compare the amended contract to 
the original and determine which tasks were added, 
which consultants were added, and the increase in the 
cost. However, the contract is without specific cost 
controls for the portion of the engagement for the 
Sheriff. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

34 



Memo to Finance and Labor Committee 

May 24, 2000 Finance and Labor Committee Meeting 



Though TechProse provides a range of consultants at a 
range of rates (their hourly rates range from $75 to 
$160), only one consultant has been used for the 
Sheriffs project at the project manager level. He is 
billed at $160 per hour, the highest hourly rate 
charged by the company. Given the number of hours 
dedicated to the project for the Sheriff and the nature 
of the work being performed, it would seem more cost- 
effective to use a mix of staff. Some of the tasks 
performed such as work flow analysis could likely be 
performed by more junior staff at lower cost. 

The existing contract is in place through June, 2000. 
For additional work in FY 2000-2001, the Budget 
Analyst believes the contract should be reviewed by 
the Sheriffs Department to determine if costs could be 
reduced through use of a mix of consultants at varying 
hourly rates. The Budget Analyst will review this 
contract as part of the FY 2000-2001 Sheriffs 
Department budget review. 

6. The Department's projections for residential drug 
treatment service expenditures for the balance of the 
current fiscal year exceed the average actual amounts 
that have been paid during the first 10 months of the 
fiscal year. Based on actual fiscal year expenditures in 
April 2000, expenditures for the last two months of FY 
1999-2000 should be approximately $395,280 or 
$40,138 less than the Department's projected 
$435,418, as follows. 

Budget Analyst's Residential Drug Treatment 
Service Cost Projections for May and June 2000 



Average number of beds used April, 2000 


108 


Average cost per bed per day 


$60 


Number of days in May and June 


61 


Total estimated cost last two months 




FY 1999-2000 


$395,280 


Sheriffs projected cost last two months 




FY 1999-2000 


$435,418 


Difference 


$40,138 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

35 



Memo to Finance and Labor Committee 

May 24, 2000 Finance and Labor Committee Meeting 



The $700,000 requested for residential drug 
treatment services could thus be reduced by $40,138 
to $659,826. 

7. The Department's $9,820 expenditure projections for 
the new Deputy Sheriff position assume that the 
position will be hired and in place for 2.4 pay periods 
of FY 1999-2000. Given that the date of this hearing 
is scheduled to be May 24. 2000 and final approval by 
the full Board of Supervisors will not occur until June 
5, 2000, it is not possible for the new position to be 
filled and paid for 2.4 pay periods this fiscal year. 
Further, the new position should be reviewed as part 
of the Sheriffs proposed FY" 2000-2001 budget if the 
Mayor adds this position to the budget. This 
approach would offer an opportunity to review the 
Department's ability to perform this State-mandated 
function with existing authorized personnel. 
Accordingly, the $9,820 requested or this purpose 
should be deleted from this supplemental 
appropriation request. 

8. The Budget Analyst suggests that the Sheriff develop 
an overtime tracking and reporting system that will 
provide upper management with more details on why 
overtime is being used throughout the Department to 
enable the Sheriff and managers to take corrective 
action when these costs exceed the amounts 
budgeted. 

9. The Budget Analyst suggests that the Sheriff 
negotiate with TechProse in FY' 2000-01 so that the 
contract specifies costs for services and that the 
contractor justify use of only senior staff for further 
work. 

10. The Budget Analyst suggests that the Sheriff re- 
analyze staffing needs for City Hall security and 
devise a plan that will call for less reliance on 
overtime without increasing securitv risks. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

36 



Memo to Finance and Labor Committee 

May 24, 2000 Finance and Labor Committee Meeting 



Recommendations: 



Amend the proposed supplemental appropriation to 
reduce the amount of the General Fund Reserve as a 
source of funds by $206,837 from $4,901,934 to 
$4,695,097 as follows: 



Item 



From 



To 



Reduction 



Funding Sources 



General Fund Reserve 

(Page 1, line 15) $2,142,114 



$1,935,277 



$206,837 



Funding Uses 



Permanent Salaries 
(Page 2, line 2) 



5,200 



5,200 



Retirement Pick-up 
(Page 2, line 4) 



1.120 



1,120 



Materials and Supplies 
(Page 2, line 4) 



3,500 



3,500 



Workers Compensation 
(Page 2, line 10) 



350,000 



333,300 



16,700 



Overtime 
(Page 2, line 15) 



1,018,327 



878,148 



140,179 



Professional Services 
(Page 2, line 23) 



700,000 



659,862 



40,138 



2. Approve Item 5, File 00-0774, as amended in the 
amount of $4,695,097. 

3. Disapprove Item 6, File 00-0787, the ordinance to 
establish a new 8304 Deputy Sheriff position, since 
creation of that new position should be considered as 
part of the Sheriffs FY 2000-2001 budget review. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

37 



Memo to Finance and Labor Committee 

May 24, 2000 Finance and Labor Committee Meeting 

Item 7 - File 00-0775 



Department: 
Item: 



Fire Department 

Ordinance appropriating $2,249,123 from the General Fund 
rve, $500,000 from Fire Department permit fee 
revenues, and rescinding and re-appropriating $1,270,259 
from the departmental Lease/purchase budget, to fund 
salaries, overtime, fringe benefits, workers compensation, 
uniforms and protective clothing at the Fire Department, for 
Fiscal Year 1999-2000. 



Sources of Funds: 



Description: 



General Fund Reserve $2,249,123 
Additional FY 1999-2000 Fire Department 

Fee Revenue.- 500,000 
Re-appropriated FY L999-2000 Fire 

Department Lease/Purchase Funds 1.270.259 

Total $4,019,382 

Fund Sources 

Additional Fire Department Fee Revenues ($500,000) 

Increased demand for Fire Department services and fee 
collections have produced excess FY 1999-2000 revenues in 
the amount of $500,000, as estimated by the Controller and 
the Fire Department 

Re-appropriated Fire Department Lease/Purchase 
Funds ($1,270,259) 

The proposed supplemental appropriation ordinance would 
re-appropriate Fire Department funds originally budgeted for 
equipment lease/purchase in the amount of $1,270,259. 
According to Ms. Ben Rosenfield of the Mayor's Budget 
Office, the $1,270,259 in available funds results from interest 
earned on the lease/purchase debt service reserve fund and 
from reductions to debt service reserve requirements in 
relation to the principal amount outstanding, totaling 
$1,270,259. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

38 



Memo to Finance and Labor Committee 

May 24, 2000 Finance and Labor Committee Meeting 






Fund Uses 

A summary of the proposed fund uses is shown below: 

Permanent Salaries-Uniform $402,151 

Mandatory Fringe Benefits 88,473 

Uniformed Overtime 1,099,656 

Workers Compensation 1,280,259 

Uniforms 1,148.843 

Total $4,019,382 

Table I on the following page, titled "Fire Department 
Expenditure Projections," includes the revised FY 1999-2000 
budgeted expenditures and the year-to-date expenditures for 
the first ten months of the fiscal year (through April 14, 
2000, for Salaries, Premium Pay, Overtime, Hobday Pay, and 
Mandatory Fringe Benefits, as detailed in the Controller's 
Monthly Projection Report for the period ending April 30, 
2000. 

The year-end projection figures for Salaries, Premium Pay, 
Overtime, Hobday Pay, and Mandatory Fringe Benefits were 
obtained from the Controller's Monthly Salary and Fringe 
Benefit Projection Report, using the amounts expended in 
the pay period ending April 14, 2000, as the basis for 
determining the year end projections. Premium Pay, Hobday 
Pay and Mandatory Fringe Benefit revised budget figures 
reflect journal entries by the Controller. 

The projection for Workers Compensation was obtained from 
the Controller's Report of May 5, 2000, to the Mayor and the 
Board of Supervisors. The projection for Uniforms is based on 
the Department's estimate. The Surplus/Deficit column 
displays the difference between the revised budget and the 
year end projection. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

39 



Memo to Finance and Labor Committee 

May 24, 2000 Finance and Labor Committee Meeting 



Table I 
Fire Department Expenditure Projections 



Use 


Revised 
Budget 


Current 
YTD 


Year End 
Projection 


Surplus 
(Deficit) 


Amount 
Reauested 


Salaries 


Sill. 360.414 


$85,237,603 


• s.001.845 


$3,358,569 


$402,151 


Premium Pay 


9,592,460 


7.503,301 


9.592.460 








Overtime 


3,586.076 


6,16! 


8,090.094 


1,018) 


1.099.656 


Holiday Pay 


843.142 


813.619 


843.1 12 








Subtotal 
Salaries 

Mandatory 

Fringe 

Benefits 


$125,382,092 
18.937.595 


$99,720,502 

15.157,819 


1126,627,541 

18.948.076 


$(1,145,449) 
(10.481) 


$1,501,807 

88.473 


Subtotal 

Salaries and 

Benefits 


$144,319,687 


$114,878,321 


11 15,475,617 


($1,155,930) 


$1,590,280 


Workers 
Compensation 


5,200.000 


5.116.237 


6,480.259 


(1,280,259) 


1,280,259 


Uniforms 


13.834 


586.411 


1.162.677 


(1.148.843) 


1.148.843 


Total 


$149,533,521 


$120,580,969 


$153,118,553 


$(3,585,032) 


$4,019,382 



As shown in Table I, the current projected deficit for salaries 
and fringe benefits for FY 1999-2000 is $1,155,930. When 
added to the Controller's projected Workers' Compensation 
deficit of $1,280,259 and the amount requested for L'niforms 
of SI, 148.843 the total Fire Department expenditure deficit is 
$3,585,032. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

40 



Memo to Finance and Labor Committee 

May 24, 2000 Finance and Labor Committee Meeting 



Explanation of 

Expenditure 

Request: 



1. Permanent Salaries-Uniform ($402,151) 

Fringe Benefits ($88,473) 
Ms. Debra Ward Chief Financial Officer of the Fire 
Department reports that the Department is requesting a 
total of $490,624 for uniformed salaries ($402,151) and 
mandatory fringe benefits ($88,473) to fund costs incurred in 
hiring a class of 36 classification H2 Firefighter Recruits 
that commenced training on April 17, 2000. 



2. Overtime ($1,099,656) 

The projected deficit in Fire Department Overtime is 
$4,504,018, as shown in Table I above. 

The Finance and Labor Committee held a hearing on 
November 10, 1999, to consider Fire Department overtime 
(File 99-1941). As a part of the overtime review, the Fire 
Department prepared a spending plan for the remainder of 
FY 1999-2000 that projected changes in the rate of spending 
for salaries and fringe benefits as new Firefighter personnel 
were hired, thus diminishing the need for overtime 
expenditures in the second half of FY 1999-2000 to backfill 
for vacancies in Fire Suppression units. The Fire 
Department's spending plan submitted to the Finance and 
Labor Committee at that time projected a net year end 
surplus in salaries and fringe benefits of $1,261,235, 
including a projected deficit in overtime spending (offset by 
surpluses in other salaries and fringe benefits) of $841,983. 
However, as shown in Table I on the preceding page, the Fire 
Department now faces a net projected deficit for FY 1999- 
2000 of $1,155,930 in salaries and fringe benefits, including 
overtime, indicating that the Fire Department has expended 
$2,417,165 more than projected in the November of 2000 
spending plan ($1,261,235 plus $1,155,930). 

The current projected deficit in Overtime spending (offset by 
surplus in salaries and fringe benefits) is $4,504,018, as 
shown in Table I, or $3,662,035 more in overtime spending 
than the $841,983 (offset by surplus in salaries and fringe 
benefits) projected by the Fire Department in November, 
1999. 



The Attachment to this report is a memorandum from Ms. 
Ward explaining why the current projection for Fire 
Department Salary and Fringe Benefit spending, including 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

41 



Memo to Finance and Labor Committee 

May 24, 2000 Finance and Labor Committee Meeting 



overtime exceeds the Department's spending plan of 
November 1999 by a total of $2,417 Ll 

3. Workers Compensation (S 1,280,259) 

According to Ms. Ward, the projected deficit in Workers 
Compensation is due to "several unforeseen catastrophic 
illnesses, as follows: (1) One retiree, who sustained a head 
injury while employed by the Department, has been admitted 
to a Skilled Nursing Facility at a cost of approximately 
$1,000 per day; (2) One ret nee received a heart transplant 
early in FY 1999-2000; and (3) One other retiree is scheduled 
to receive a heart transplant as soon as a suitable organ 
becomes available. These three cases alone account for all of 
the unanticipated total excess spending on workers 
compensation claims. 

4. Uniforms ($1,148,843) 

According to Ms. Ward, the Fire Department anticipates 
spending approximately $] 15 million for station and dress 
uniforms, and for personal protective clothing during FY 
1999-2000. 

According to Ms. Ward, the budget that was submitted and 
approved for the current fiscal year did not include any 
funding specifically for personal protective clothing or 
uniforms. According to Ms. Ward, this oversight occurred 
as a result of the manner in which personnel protective 
clothing and uniforms were previously budgeted and 
ordered. In previous years, the budget for such purchases 
was placed in the Operations" Division but the 
responsibility for ordering and distributing these items 
rested with the Division of Support Services. To ensure 
that this type of oversight does not occur in the future, 
funding for personal protective clothing and uniforms is 
now budgeted in the Division of Support Services, which is 
responsible for ordering, inventory control and distribution 
of personal protective clothing. 

As a part of the ongoing performance audit of the Fire 
Department. Budget Analyst staff have noted instances of 
Firefighters in uniforms below acceptable standards. We 
have also noticed large holes in protective boots and ill-fitting 
uniforms. Further, the Budget Analyst has been informed 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

42 



Memo to Finance and Labor Committee 

May 24, 2000 Finance and Labor Committee Meeting 



that some standard uniform items have not been distributed 
to Firefighters this year. 



Comment: 



As noted above in Table I, the proposed supplemental 
appropriation of $4,019,382 is $434,350 more than the total 
projected deficit using current expenditure data of 
$3,585,032. 



Therefore, the proposed supplemental appropriation of 
$4,019,382 should be reduced by $434,350 to $3,585,032. 



Recommendation: 1. Amend the proposed supplemental appropriation to 
reduce the amount of the General Fund Reserve as a source 
of funds by $434,350 as follows: 

Item From To Reduction 

Funding Sources : 

General Fund Reserve $2,249,123 $1,814,773 $434,350 

(Page 1, line 13) 

Funding Uses : 

Permanent Salaries - Uniform $402,151 $0 $402,151 

(Page 1, line 23) 

Fringe Benefits 88,473 56,274 32,199 

(Page 2, line 1) 

2. Approve the proposed supplemental appropriation as 
amended. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

43 



Attachment 




SAN FRANCISCO I^SiKIRK DEPARTMENT 



Chief Financial Officer 



Memorandum 



To: Stan Jones, Budget Analyst . \ 

From: Debra Ward, Chief Financial Officer - ^ 

Date: May 18,2000 \) 

Subject: Change in Overtime Projection 



As requested, I am forwarding this statement on the reasons for the change in the year- 
end overtime projections for the Fire Department. If you have any additional questions, 
please feel free t contact me. 

In November of 1 999 the Department anticipated a year-end salary and fringe benefit 
surplus of approximately $1,260,000. That projected surplus was based on the hiring of 
three recruit classes totaling 1 10 individuals beginning in late November 1999. Those 
three classes were to be used to replace employees who retired during the year and to 
reduce the amount of overtime related to employees who were absent from work for 
various reasons. This included absences due to scheduled vacations, sick leave and 
disability leave. 

Since the beginning of the fiscal year there have been approximately 50 retirements and 
the average number of employees on disability has been in the range of 85 to 90. This 
resulted in overtime hires of approximately 20 people per day. The original overtime 
projections were based on hiring an average of 14 to 16 people per day. 

The first class of recruits for this fiscal year did not begin until Monday, April 17, 2000. 
The Department will not receive any benefit from this class, in terms of the reduction of 
overtime, in the current fiscal year. As a result the Department is now anticipating a 
deficit of $1,155,930 in salaries and benefits bv the end of Fiscal Year 1999-2000. 



44 



Memo to Finance Committee 

May 24, 2000 Finance Committee Meeting 

Item 8 - File 00-0779 



Department: Department of Public Health (DPH) 

San Francisco General Hospital (SFGH) 

Item: Supplemental Appropriation in the amount of $10,000,000 for 

San Francisco General Hospital. 

Amount: $10,000,000 

Source of Funds: General Fund Reserve 

Description: The actual current total projected deficit for SFGH is 

$16,106,410 resulting from a total revenue shortfall of 
$19,722,784 less expenditure savings of $3,616,374. However, 
this deficit is offset b\ T net savings in other Divisions of the DPH 
amounting to $6,165,653 thereby reducing the overall projected 
DPH deficit to a current DPH projected deficit of $9,940,757. 

The following table shows projected FY 1999-2000 surpluses and 
deficits for all divisions of DPH. 



COMMUNITY HEALTH NETWORK 

San Francisco General Hospital 
Laguna Honda Hospital 
Primary Care 
Health at Home 
Forensics 

Community Health Network Subtotal 

POPULATION, HEALTH AND PREVENTION 

Central Administration 
Community Health 
Mental Health 
Substance Abuse 

Population, Health and Prevention Subtotal 

Total Deficit 



Surplus 
(Deficit) 

$( 16, 106,410) 

(600,000) 

(3,850,367 

709,606 

(986,850) 



$(20,834,021) 



S 490,247 

227,263 

9,129,674 

1.046.080 

5 10.893.264 

$(9,940,757) 



Board of Supervisors 
Budget Analyst 

45 



Memo in Finance Committee 

May 24, 2000 Finance Committee Meeting 

Detailed projections for each of the DPH Divisions summarized 
in the table above are shown in Attachment 1 to this report. 

Attachment 2 to this report provides a written description of the 
surpluses or deficits in each DPH Division and the effects on 
DPH programs. 

Comments: 1. The Budget Analyst has reviewed FY 1999-2000 detailed 

revenue projections for SFGH. The projected revenue shortfall of 
$19,722,784 is largely comprised of a total deficit of 
approximately $22.1 million in: a) Short Doyle Medi-Cal revenue 
for in-patient psychiatric beds ($2.2 million) b) Medi-Cal patient 
revenue ($13.2 million), c) Medicare revenue ($4.2 million) and. 
d) miscellaneous patient revenue ($2 I million). These revenue 
shortfalls are offset by approximately $2.4 million in revenue 
that exceeds budget estimates for State Realignment funds ($1.0 
million) and $1.4 million in new patn-nt revenues offset by 
uncollectible accounts. 

The significant revenue shortfall of approximately $13.2 million 
in Medi-Cal patient revenue is comprised largely of an 
anticipated $10.0 million reduction in SB855 Disproportionate 
Share revenues. According to DPH. $39 million in SB 855 
revenue was budgeted for FY 1999-2000 and the DPH now 
estimates that actual SB 855 revenues will be approximately 
$29 million. DPH states that SB 855 revenues tend to fluctuate 
widely, noting that in FY 1998-99. DPH received a total of | 
million in SB 855, or $5.0 million more than budgeted. 

DPH states that they have not received written notification of 
actual SB 855 revenues that will be received from the State for 
FY 1999-2000. Such written notification is anticipated prior to 
the end of the current Fiscal Year. 

Ms. Monique Zmuda. Chief Financial Officer of DPH, anticipates 
that the ongoing net revenue impact, after adjustments for rate 
changes and other revenue increases, will be a reduction in 
SFGH revenue of approximately $17.0 million (including a $10.0 
million reduction in anticipated SB 855 revenue) in FY 2000- 
2001. 



Board of Supervisors 
Budget Analyst 

46 



Memo to Finance Committee 

May 24, 2000 Finance Committee Meeting 

3. The Budget Analyst has reviewed the DPH deficit 
projections and the supporting detailed revenue projections for 
SFGH. Based on the financial information submitted by the 
DPH, the Budget Analyst concurs with the current projected net 
DPH deficit of $9,940,757. 

4. On February 9, 2000, the Finance and Labor Committee 
conducted a hearing on the Department of Public Health's 
financial condition (File 00-0226). At that time the DPH 
projected a department-wide FY 1999-2000 deficit of 
$15,435,508. The DPH also presented a deficit reduction plan to 
the Finance and Labor Committee that, according to DPH 
estimates at that time, would reduce the deficit to 
approximately $4,000,000. Since that time however, the DPH 
has revised its SB 855 Revenue estimate to reflect the 
anticipated loss of $10,000,000 as discussed above, which when 
added to the $4,000,000 remaining year end deficit projected in 
February of 2000, resulted in a total of $14,000,000 or 
$4,000,000 more than this requested supplemental 
appropriation of $10,000,000. Attachment 3 to this report 
discusses the changes that have occurred to DPH budget 
projections since the February 9, 2000 hearing. The primary 
change has been that DPH has received an additional $4.0 
million in SB 90 State funding, reducing the anticipated deficit 
to the requested amount of $10,000,000. 

5. As noted above, DPH's current projected deficit for all 
Divisions totals $9,940,757 or $59,243 less than the $10,000,000 
amount requested. Therefore, the proposed supplemental 
appropriation can be reduced by $59,243. As noted in 
Attachment 3, should SB 855 actual revenues for FY 1999-2000 
not decrease by the anticipated amount of $10,000,000, then 
surplus revenues will be returned to the General Fund Reserve. 

tecommendations: 1. Amend the proposed supplemental appropriation by 
reducing the amount requested from the General Fund Reserve 
by $59,243 from $10,000,000 to $9,940,757 in accordance with 
Comment 5 above. 

2. Approve the proposed supplemental appropriation as 
amended. 



Board of Supervisors 
Budget Analyst 

47 



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48 



Projected FY 1999-00 Year-End Surplus/Deficit 



Attachment 2 Page 1 of 4 



REVENUES 




EXPENDITURES 




SUBTOTAL 




Revised 


Current 


Surplus/ 


Revised 


Current 


Surplus/ 


Surplus/ 


Division 


Budaet 


Projection 


(Deficit) 


Budaet 


Projection 


(Deficit) 


(Deficit) 


Community Health 


Nerwck 














SrGH 


S467.014.0S9 


S 447.291 .31 5 


S (19.722,784) 


S 467.014,099 


S 463,397.725 S 


3.616.374 


S (16,106.410) 


Laguna Honda 


123.045.468 


125.445,468 


2,400.000 


123.045.468 


126.045,468 


(3.000.000) 


(600.000) 


Pnmary Care 


41.537.430 


37,619.726 


(3.917,704) 


41,537.430 


41,470.093 


67.337 


(3,850.367) 


Health at Home 


4.526.315 


4,549,974 


123.659 


4.526.315 


3.940.368 


585.947 


709.606 


Forensics 


71 ROi 774 


71.891.776 


452 


71 RQ1 774 


77 R7R fi7R 


fOR7 -w?) 


(9fl6.fl50) 


Subtotal 


658,014.636 


636,898,259 


(21.116,377) 


658,014,636 


657,732,280 


282,356 


(20,834,021) 


Population Health 


. Prevention 














Central Admin 


18.447,735 


18.479.434 


31,699 


18.447.735 


17.989.187 


458,548 


490.247 


Community Health 


56.599,193 


56.216.757 


(382.436) 


56.599.193 


55.989.494 


609.699 


227.263 


Mental Health 


140.118.482 


148.549.443 


8.430.961 


140.118.482 


139.419.769 


698.713 


9.129.674 


Substance Abuse 


54,473.864 


- 54.737.323 


263.459 


■U 477 RR4 


« RQ1 747 


7R7S71 


1 rufi nfln 


Subtotal 


269,639,274 


277,982,957 


8,343,683 


269,639,274 


267,089,693 


2.549,581 


10,893,264 


Total DPH 


927,653,910 


914,881.216 


(12,772.694) 


927.653,910 


924,821,973 


2,831,937 


(9,940,757) 



COMMUNITY HEALTH NETWORK 

San Francisco General Hospital: Year-end projections show a shortfall of S16,106,410. 

Revenues are projected to be SI 9,722,784 under budget due to: 

• a S2, 174,350 deficit for Short Doyle Medi-Cal revenues due to lower than expected 
reimbursement for acute inpatient psychiatric services. The Short Doyle match is projected to 
be as budgeted (S8.2 million); 

• a S13, 192,725 deficit in Medi-Cal primarily based on significantly lower revenues from the 
SB855 Disproportionate Share program (S10 million) based on information obtain this 
month; 

• a S4, 187,349 deficit in Medicare revenues primarily resulting from lower than expected 
reimbursement; 

• a S9, 844,221 surplus in patient revenues is based on actual revenues received year-to-date. 
This revenue category will be offset by uncollectible accounts; 

• a S8,492,986 shortfall in revenues associated with uncollectible accounts. This shortfall will 
reduce the actual revenues anticipated from accounts receivable included inpatient revenues: 

• a S2,5 1 9,595 deficit in miscellaneous revenues primarily due to additional capitation revenue 
offset by lower than expected LHSS revenue. The IHSS revenue shortfall will be offset by an 
equivalent savings in work order expense. Capitation revenue and IHSS revenue were 
recently reclassified as miscellaneous revenues; and 

• a Si, 000,000 surplus in additional Realignment revenues based on revised estimates from the 
Controller. Additional Health Realignment revenues were allocated to SFGH to offset other 
revenue losses. 



49 



C:\wlndowstTEMP\-ME0O00Edoc 05/18/00 



Source: Department of Public Health 



000. 



Attachment 2 Page 2 of 4 

Expenditures are projected to be under budget by S3, 6 16,374 due to: 

• a S 1,360,5 71 deficit from salaries and fringe benefits based on year-to-date actual expense; 

• a S3, 100,000 surplus in materials and supplies primarily from one time savings; and 

• a SI, 876,945 surplus in workorders from other departments for lower than expected IHSS 
expense. 

Current projections for Medi-Cal SB855 assume revenues of S29 million. This compares to a 
budget of S39 million. SB855 revenues have been fluctuating significantly over the past 2 years. 
Last fiscal year SFGH received S44 million from the SB855 DSH program, SI 5 million more 
than currently projected. 

The current projection of S29 million from the SB855 DSH program is based on recent estimates 
obtained this month. At this time, DPH has not received written notification of SB885 revenues. 
More details will be available in the coming months and revenue estimates will be revised. 
Department staff will keep the Health Commission informed of any significant revisions in 
SB855 revenue. 

Laguna Honda Hospital: Year-end projections show a shortfall of S600 

Revenues are projected to be S2, 400. 000 over budget due to: 

• a S4, 382, 044 surplus in Medi-Cal revenues primarily due to increased census, an increase in 
the SNF reimbursement rate of S3. 78 per day, and a S1.2M rate settlement. 

• a SI ,414,503 deficit in Medicare revenues primarily due to a shift in payor mix; 

• a S464,587 deficit in patient revenues due to an increased allowance for uncollectible 
accounts; and 

• a SI 02,954 deficit in other miscellaneous revenues primarily due to a decrease in cafeteria 
meal sales. 

Expenditures are projected to be over budget by S3, 000.000 due to: 

• a SI, 565,916 deficit from salaries and fringe benefits based on year-to-date actual expense; 

• a S334.084 deficit in contractual services based on spending year-to-date; 

• a S600,000 deficit in materials and supplies primarily due to increased pharmaceutical 
expense; and 

• a S500.00 deficit in workorders to other departments for additional workers compensation 
expense. 

Primary Care: Year-end projections show a shortfall of S3.S50.367. 

Revenues are projected to be S3. 91 7.704 under budget due to: 

• a S2.383.96S deficit in Medi-Cal revenues primarily from lower than expect FQHC revenues; 

• a S462.069 surplus in Medicare revenues due to higher than expected reimbursement; 

• a S945.166 deficit in Patient revenues based on year-to-da'? actual revenues: 

• a S4 1.085 surplus in miscellaneous revenues primarily from higher than expected capitation 
payments; and 

• a SI .091 ,724 shortfall in revenues associated with uncollectible accounts. This shortfall will 
reduce the actual revenues anticipated from accounts receivable included in patient revenues. 

Expenditures are projected to be under budget by S67.337 due to: 

• a S382.663 deficit from salaries and fringe benefits based on year-to-date actual expense; 

c -^^.TtMP^Eooootaoc OV1WO 50 Source: Department of Public Health 



Attachment 2 Page 3 of 4 

• a S350,000 savings in materials and supplies based on year-to-date spending; and 

• a SI 00,000 savings in facilities maintenance from prior year projects. 

Health at Home: Year-end projections show a surplus of S709,606. 

Revenues are projected to be S123,659 over budget due to: 

• a S 168,168 surplus in Medi-Cal revenues based on year-to-date actual revenues; 

• a 545,729 deficit in Medicare revenues due to lower than expected reimbursement; and 

• a S 1 ,220 surplus in Patient revenues. 

Expenditures are projected to be under budget by S585,947 due to: 

• a S387,481 surplus from salaries and fringe benefits based on year-to-date actual expense; 

• a S200,000 surplus in contractual services based on year-to-date spending; and 

• a 51,534 deficit in materials and supplies. 

Forensics: Year-end projections show a shortfall of S986,850. 

Revenues are projected to be S452 over budget due to additional miscellaneous revenues. 

Expenditures are projected to be over budget by S987,302 due to: 

• a S834,726 deficit from salaries and fringe benefits based on year-to-date actual expense; and 

• a SI 52,576 deficit in materials and supplies primarily from higher than expected 
pharmaceutical expense. 



POPULATION HEALTH AND PREVENTION 

Central Administration: Year-end projections show a surplus of S490,247. 

Revenues are projected to be S3 1,699 over budget due to: 

• a 521,731 surplus in Medi-Cal revenues primarily from prior year settlement; and 

• a 59,968 surplus in miscellaneous revenues. 

Expenditures are projected to be $458,548 under budget due to a surplus from salaries and fringe 
benefits based on year-to-date actual expense. 

Community Health: Year-end projections show a surplus of 5227,263. 

Revenues are projected to be S382,436 under budget due to: 

• a 53,945 surplus in Medi-Cal revenues primarily from additional prior year MAA/TCM 
revenue offset by less than expected miscellaneous Medi-Cal revenue; 

• a 5166,438 surplus in Medicare revenues primarily from the TB clinic; 

• a SI, 104, 759 deficit in patient revenues primarily from lower than expected CCS revenues; 

• a 5562,287 surplus in miscellaneous revenues primarily due to additional indirect cost 
revenue; and 

• a SI 0,347 deficit in social service Realignment revenues. 

Expenditures are projected to be under budget by S609,699 due to: 
cAw,n ao «>re«R-«EooootoocoviMx 1 51 So u re e : De pa rtm e n t of P u b I i c Hea 1 1 h 



Attachment 2 Page 4 of 4 

• a S390,085 savings from salaries and fringe benefits based on year-to-date actual expense; 
and 

• a S2 19,6 14 surplus in contractual services primarily as a result of expenditure reductions to 
offset revenues shortfalls in the CCS program. 

Mental Health: Year-end projections show a surplus of S9, 129,674. 

Revenues are projected to be S8,430,961 over budget due to: 

• a S500,000 surplus in Short Doyle Medi-Cal due to higher than expected reimbursement; 

• a S697,715 deficit in Medicare revenues resulting from lower than expected reimbursement; 

• a SI 5,532 surplus in patient revenues based on year-to-date actual revenues; 

• a S7.8 13,144 surplus in miscellaneous revenues primarily from prior year SB90 revenue of 
S8.0 million; and 

• S800,000 surplus from additional Realignment revenues based on revised estimates from the 
Controller. 

Expenditures are projected to be under budget by S698,713 due to: 

• a S75 1,261 deficit in salary and fringe benefit benefits based on year-to-date actual expense; 

• a 51,562,000 savings in contractual services primarily from the late start up of services; 

• a S96,805 surplus in materials and supplies; and 

• a S208.832 deficit in work order expenses that are higher than expected for workers comp 
(5130,000) and city attorney ($78,832). 

Substance Abuse: Year-end projections show a surplus of Sl,046,080. 

Revenues are projected to be $263,459 over budget due to: 

• a S200,000 surplus Short Doyle Medi-Cal revenues that are higher than expected; and 

• a S63,459 surplus in miscellaneous revenues. 

Expenditures are projected to be 5782,62 1 under budget due to: 

• a S1S2.621 savings in salary and fringe benefits based on year-to-actual expense; and 

• a S600,000 savings in contractual services as a result of one-time savings from the delayed 
startup of new programs. 



C 'wmd<7», rEMP\-MEOOOOeao< Ol'llTOO 



52 Source: Department of Public Health 



City and County of San Francisco 



Attachment 3 



Department of Public Health 




MEMORANDUM 



Date: 
To: 

From: 



May 18,2000 

Harvey Rose 
Budget Analyst 



Monique Zmuda 
Chief Financial Officer 




k 



Subject: Supplemental Appropriation for San Francisco General Hospital 



This memo is in response to your request for information on the SI million supplemental 
appropriation for San Francisco General Hospital. 

The projected deficit for the Department of Public Health as of the six months ending March 
2000 was $4 million. At that time revenues from the SB855 Disproportionate Share Program 
were projected to be S39 million, as budgeted. 

In the intervening months, two significant changes to revenue projections have occurred. The 
first change is that £4 milhon in additional SB90 revenues have been received which can be 
applied to the Population Health and Prevention division in the current fiscal year. The second 
change is that SB855 revenues are estimated to be S29 milhon, a S10 milhon reduction from the 
current budget of $39 million. Department staff obtained this information last month from the 
California Association of Public Hospitals and the State Department of Health Services. Written 
notification of the current year SB855 revenue has not yet been received. As a result, the current 
year deficit is projected to be S10 million, primarily a result of the SI million loss in revenues 
from the SB855 Disproportionate Share Program. 

The Department of Public Health is requesting a S10 million supplemental appropriation for San 
Francisco General Hospital based on current projections. However, should actual revenues 
received in the current year from the SB855 Disproportionate Share Program actually exceed 
current estimates, then surplus General Funds will be returned to the City and County at year 
end. 

If you have any questions, please call me at 554-2605. 



Finance 



101 Grove Street 



53 



San Francisco, CA 94102 

TOTAL P. 02 



Memo to Finance and Labor ( !ommittee 

May 24, 2000 Finance and Labor Committee Meeting 

Item 9 - File 00-0840 



Department: 
Item: 



Airport 

Resolution approving a new banking services lease 
in the North, Central, and South Terminal 
Buildings between Bank of America, National 
Association, and the City and County of San 
Francisco, acting by and through its Airport 
Commission. 



Location: 



Purpose of Lease: 



Lessor: 



Lessee: 



Square Feet and 
Monthly Rental 
Revenues Payable 
by Bank of America 



The North, Central and South Terminal Buildings, 
San Francisco [nternationa] Airport 

The proposed new six-year lease would pi 
space in the Airport s North. Central and South 
Terminals to Bank of America. Inc. for banking 
services, including one Bank of America branch 
location and up to 10 Automated Teller Machines 
(ATM) .it five different locations (See Comment No. 
1). Under the proposed lease. Bank of America 
would be required to install at least one ATM at 
each of the five locations, and would have the 
option to install two ATMs at each location, for a 
maximum of 10 ATMs. These ATMs would operate 
24 hours per day, seven days a week at five 
locations as shown in Attachment I provided by the 
Airport. 

City and County of San Francisco, acting by and 
through its Airport Commission. 

Bank of America, National Association 



$21,750 per month ($261,000 annually). 30 percent 
of this $21,750 monthly rent, or $6,525, is prorated 
for the bank branch location. The branch location 
consists of 1,058 square feet, with a rent of $6.17 
per month per square foot. 70 percent of the 
monthly rent of $21,750, or $15,225, is prorated for 
the five ATM locations. Mr. Rhoades advises that 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

54 



Memo to Finance and Labor Committee 

May 24, 2000 Finance and Labor Committee Meeting 



Annual Rental 
Revenues Payable 
by Bank of America 
to the Airport: 



the Airport does not calculate rent for ATM 
locations based upon square feet. 



The Minimum Annual Guarantee of $261,000 for 
the proposed lease (to operate one branch location 
and up to 10 ATMs) is $46,840 more than the 
Minimum Annual Guarantee of $214,160 for the 
existing lease (to operate two branch locations and 
eight ATMs). Beginning with the first year of the 
lease, and through the duration of the six-year 
lease period, the base annual rent payable by Bank 
of America to the Airport for the subject lease 
would be the Minimum Annual Guarantee of 
$261,000 (subject to Consumer Price Index annual 
adjustments) plus Percentage Rent and Transaction 
Rent, defined in the lease as follows: 

"Percentage Rent" means rent paid in addition 
to and without set off against the [Minimum 
Annual Guarantee], in an amount equal to 
thirty-three percent (33%) of any Transaction 
Surcharge and/or changes for Optional Uses 
[defined as shown in Attachment II to this 
report] approved by Director and charged to 
ATM Customers who use the ATMs on the 
Premises. 

"Transaction Rent" means rent paid in 
addition to and without set off against the 
[Minimum Annual Guarantee], in an amount 
equal to ten cents ($0.10) for each Customer 
Use of Tenant's ATM on the Premises except 
that Transaction Rent shall not be payable 
with respect to 1) ATM Customer Use as to 
which Percentage Rent is payable, and 2) ATM 
Customer Use for which no transaction is 
completed due to reject of a customer's card or 
aborting by the customer of the ATM Customer 
Use prior to concluding any transaction. 



According to Mr. Rhoades, Bank of America plans 
to request permission from the Airport Director to 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

55 



Memo to Finance and Labor Committee 

May 24, 2000 Finance and Labor Committee Meeting 



impose a transaction surcharge on all non-Bank of 
America customers using the ATMs covered by the 
subject lease, as stated in Attachment III, provided 
by the Airport. Under the terms of the lease, Bank 
of America may not charge a transaction surcharge 
of more than $1.50 per customer use, and Bank of 
America would pay the Airport 33 percent of those 
surcharges. Under the terms of the lease, Bank of 
America must have written approval from the 
Airport Director to impose a transaction surcharge. 

According to Mr. Rhoades, the Airport has not 
projected future revenues to be paid by Bank of 
America to the Airport, in addition to the Minimum 
Annual Guarantee of $261,000, based on 
anticipated Percentage and Transaction Rent 
payments 

Attachment III also contains: (a) the companies 
that currently hold leases with the Airport for 
ATMs in the North, Central and South TerminaL 
of the Airport; (b) the annual Minimum Annual 
Guarantees paid by each of these companies to the 
Airport for the ATMs totaling $509,083 annually, 
and: (c) the total combined revenues from 
surcharges of $315,192 paid to the Airport by these 
companies for the ATM leases during 1999. 



Term of Lease: 



Right of Renewal: 



The proposed lease would be for a six-year period, 
commencing on September 26, 2000 and 
terminating on September 25, 2006. 

The Airport would have sole discretion to grant two 
one-vear extensions. 



Utilities and Janitor 
Provided by Lessor: 



The Lessee pays for the cost of all utilities and 
janitorial services. 



Tenant 
Improvements: 



The Lessee would be required, at its sole cost, to 
make improvements to the bank branch location. 
Bank of America's costs for these improvements 
shall not be less than $150 per the 1,058 square 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

56 



Memo to Finance and Labor Committee 

May 24, 2000 Finance and Labor Committee Meeting 



feet of the bank branch location, for a total of 
$158,700 ($150 times 1,058 square feet). Mr. 
Rhoades anticipates that these improvements will 
be completed by the September 26, 2000 lease 
commencement date. 



Description: 



On November 2, 1999, the Airport Commission 
approved final specifications for the Domestic 
Banking Services Lease for the North, Central, and 
South Terminal Buildings. Subsequently, on 
February 22, 2000, the Airport Commission 
adopted a resolution awarding the lease to Bank of 
America, Inc., the sole bidder, with a Minimum 
Annual Guarantee of $261,000. As stated in 
Attachment III, provided by the Airport, the 
Airport issued Invitations to Bid for the Domestic 
Banking Services Lease to 113 firms. According to 
Mr. Rhoades, and as stated in Attachment III, 
several banks initially expressed interest in 
participating in the bid process, but chose not to 
submit bids. Mr. Rhoades advises that these banks 
gave no explanation for their decision not to submit 
bids. 



Under the proposed lease, Bank of America would 
operate up to 10 ATMs at five different locations 
throughout the Airport's domestic terminals, as 
well as one bank branch location. 



Comments: 



1. According to Mr. Rhoades, Bank of America 
currently has a lease with the Airport for banking 
services, under which Bank of America operates 
two branch offices and eight ATMs at five locations. 
This existing lease began in 1986 and expired in 
April of 1999. According to Mr. Rhoades, the 
Airport has since continued the existing lease with 
Bank of America on a month to month basis, and 
will continue to do so until the subject new lease 
goes into effect. Mr. Rhoades advises that Bank of 
America was offered this month-to-month lease 
beginning in May of 1999 so that the Airport could 
continue offering banking services in the old 
International Terminal until it closed on 
September 25, 2000 in anticipation of the new 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

57 



Memo to Finance and Labor Committee 

May 24, 2000 Finance and Labor Committee Meeting 



International Terminal opening on September 26, 
2000. 

2. According to Mr. Rhoades, Bank of America 
currently pays to the Airport a Minimum Annual 
Guarantee of $214,160 for the existing lease, plus 
additional rent based on surcharges charged to 
certain ATM customers, totaling $108,080 in 1999, 
for a total rent of $322,240 in 1999 paid by Bank of 
America to the Airport. (See Attachment III for 
additional details on this lease). The Minimum 
Annual Guarantee of $261,000 for the proposed 
lease (to operate one branch location and up to 10 
ATMs) is $46,840 more than the Minimum Annual 
Guarantee of $214,160 for the existing lease (to 
opera 1 1' two branch locations and eight ATMs). 
According to Mr. Rhoades, one of the two branch 
offices and one of the ATM Locations operated by 
Bank of America under the existing lease are 
located in the old International (Central) Terminal, 
which the Airport plans to close when the new 
International Terminal opens on September 26, 
2000. (The Board of Supervisors recently approved 
a concession lease for ATMs in the new 
International Terminal with Travelex America, Inc. 
(File No. 00-0235). 

3. The subject lease requires the Bank of America 
to pay to the Airport an annual Initial Promotional 
Charge of $1,308 per year for advertising costs. 
This annual fee includes $1,058 for the bank 
branch location (one dollar per each of the 1,058 
square feet the branch office) and $250 for all five 
of the ATM locations ($50 times five ATM 
locations). 

4. In November of 1999, the voters of San Francisco 
approved Proposition F to prohibit banks and other 
financial institutions from charging a fee to persons 
who do not have an account with that bank or 
financial institution, for use of that bank or 
financial institution's automated teller machines in 
San Francisco. These fees are often in addition to 
fees charged to the customer by the customer's own 
bank. In response to passage of Proposition F. Bank 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

58 



Memo to Finance and Labor Committee 

May 24, 2000 Finance and Labor Committee Meeting 

of America, Wells Fargo and the California 
Bankers' Association sued the City, arguing that 
the City had no authority to restrict the fees that 
banks charge customers. In November of 1999, a 
U.S. District Court Judge granted a preliminary 
injunction preventing the City from enacting 
Proposition F. According to Mr. Matthew Davis of 
the City Attorney's Office, upon appeal, the 
injunction was upheld in the U.S. 9 th Circuit Court 
of Appeals. The case has now moved to trial in the 
U.S. District Court. The banks have asked the 
Court to issue a final order declaring Proposition F 
to be not valid. No trial date has been set. Mr. 
Davis advises that the City Attorney's Office has 
not yet formally determined whether Proposition 
F's restriction on surcharge fees would apply to 
ATMs at the Airport. 

5. The proposed lease states that if the courts 
uphold Proposition F, and determine that 
Proposition F applies to the ATMs at the Airport 
covered by the subject leases (thereby precluding 
transaction surcharges being charged by Bank of 
America, Inc. to ATM customers at the Airport), 
Bank of America would have the option to 
terminate the subject Domestic Banking Services 
Lease with the Airport, without penalty. (See 
Attachment IV, provided by the Airport, for an 
explanation of this provision in the subject lease). 

Recommendation: Approval of the proposed resolution is a policy 

matter for the Board. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

59 



Attachment I 



EXHIBIT A 
PREMISES 



DOMESTIC BANKING SERVICE LEASE 



Domestic Bank Branch and 
Automated Teller Machine (ATM) Locations 


ATM Site #1 


North Terminal Boarding Area F (second 
level) in the Hub next to Golden Gate 
Connection post-security 
(current Bank of America ATM location) 


Branch Location and 
ATM Site Wl 


North Terminal (mezzanine level) 
approximately 1,058 square feet 
(current Bank of America branch and ATM 
location) 


ATM Site #3 


North Terminal (second level) across from 
Gate 70 post-secunry. 

(current Bank of America ATM location) 


ATM Site #4 


South Terminal Boarding .Area B (second 

level) pre-security next to TWA ticket 

counter. 

(current Bank of America ATM location) 


ATM Site =5 


North Terminal (second level) 
across from Gate 74 
(new ATM location) 



/ 



Source: Airport 



60 
Exhibit A - Paee 1 



Attachment II 
Page 1 of 3 



EXHIBIT B 
USE AND OPERATIONAL REQUIREMENTS 









1 . GENERAL REQUIREMENTS : All Banking and ATM services shall be provided on a 
non-exclusive basis, and Airport reserves the right to sell and to permit other Airport tenants to 
provide such services. Tenant may not offer any services not described below as being 
"Required" or "Optional", without Director's prior consent. 

2. REQUIRED/OPTIONAL SERVICES : In the event Director permits any service to be sold 
or offered that is not listed below, or otherwise permits any other change in the Permitted Use. 
this Exhibit shall be deemed amended without need for a formal amendment of this Lease. 
Tenant shall be required to operate the Premises in accordance with the requirements, and offer 
the services, as described below. 

A. Required Branch Uses: 

Tenant shall provide the following service: 

1. Personal and commercial deposit and savings accounts 

2. Certificates of deposit, money market accounts, etc. 

3. Loans 

4. Travelers Checks, cashiers checks, money orders 

5. Bank wires 

6. Lines of credit 

7. Cash advances on bank cards 

8. Check cashing, cash withdrawals 

9. Merchant change orders 

10. *Night depository 

* The Airport may request a Premises Change (section 1.2Ac) for additional Night 
Depository locations within Airport terminals. The additional locations if provided are viewed as 
extensions to the Bank Branch and for the sole use of making night deposits. 

B. Required ATM Uses: 

Tenant shall provide the following services, on a non-exclusive basis: 

1 . Dispense United States currency. 

2. Provide access to network support for no less than four of the following networks: 
Plus, Star, Cirrus. GlobalAccess and Interlink; and accept no less than four of the 
following credit cards: American Express. Diner's Club. MasterCard. Visa. 
Discover/Novus Card. 

3. Provide a written receipt of each transaction. 

4. Provide display functions on user operation. 

5. Display transaction fee/ surcharge information. 

Source : Airport 

Exhibit B- Paae 1 6 1 



Attachment II 
Page Z of 3 



C. Optional Uses: 

Tenant may provide, on a non-exciusive basis, the following "'Optional Uses" if approved 
in writing by the Director. .Any "'Optional Use" for which Tenant receives or charges a 
commission, surcharge or other fee shall be subject to payment of Percentage Rent as described 
in Section 4 of this Lease. 

Optional Branch Uses: 

1. Provide coin rolling. 

2. Check cashing payroll or checks for Airport tenants. 

Optional ATM Uses: - 

1. Provide access to financial networks and credit cards other than those required 
under Exhibit B 2.A.2. hereto. 

2. Dispense traveler's checks. 

3. Dispense United States postage stamps at face value. 

4. Provide tickets for San Francisco regional area cultural, performing arts and 
sporting events. 

5. Dispense airline tickets. 

6. Display animated software graphics. 

7. Accept deposits to accounts. 

8. Handle debit card transactions. 

Other services consistent with the operations of ATMs that can be demonstrated to benefit 
customers and the traveling public, if and as approved by the Airport Director. 

3. PROHIBITED MERCHANDISE : Tenant understands and agrees that the following 

products or services are not included within the Permitted Use. without the prior written consent 
of Director, which consent may be granted or denied in Director's absolute and sole discretion. 

Prohibited Branch and ATM Uses: 

1. .Any and all sales of phone cards. 

2. Dispense or exchange foreign currency. 

3. Offer gambling of any kind. 

4. Display advertising, except for the electronic display of Tenant's services during 
"wait" times while transactions are processing, which shall not be deemed to be 
advertising prohibited hereunder. 

5. Sell any type of merchandise. 

6. The sale or deliver.' of any duty frecin-bond merchandise. 

7. Any and all sales from vending machines or other mechanical devices, including 
but not limited to such items as: cigarettes, candy, maps, coffee and soft drinks. 
newspapers, stamps and insurance policies. 

8. .Any and all sales of meals, alcoholic beverages by the drink, and soft dnnks. 
whether for immediate consumption or for public sale. 



Exhibit B - Pa°e 2 



62 



Attachment II 
Page 3 of 3 



9. Any and all sales of bottled water and boxed, bottled, or canned juice. 

10. Freshly prepared popcorn or peanuts in the shell or other baked products intended 
for immediate consumption. 

11. Souvenir items. 

12. .Any and all sales or rental of telecommunications equipment. 



Exhibit B - Pase 3 



63 



Attachment III 
Page 1 of 2 



AIRPORT COMMISSION 

SAN FRANCISCO INTERNATIONAL .AIRPORT 

CITY AND COUNTY OF SAN FRANCISCO 

INTER- OFFICE MEMORANDUM 



TO: Emilie Neumann 

Budget Analyst's Office 



DATE: 



May 17, 2000 



FROM: Mark S. Anthony 

SUBJECT: File #00-0S40-Airport Domestic Banking Services Lease 



Below please find the background information you requested regarding the Resolution 
before the Board of Supervisors approving the Airport's Lease for Domestic Banking 
Services. 



We understand that Bank of -America, National Association plans to charge a surcharge 
as permitted in Exhibit B to the Lease. The Amount of the surcharge will not exceed 
S1.50. 

The Airport will receive 33% of any surcharge Bank of America charges. 

CURRENT DOMESTIC BANKING AND ATM LEASE AGREEMENTS 

Bank of America currently has two leases. 

(1) Domestic Banking and ATM Lease L86-0039 with two bank branches, 
eight ATM machines, and current MAG of S2 14, 160 (plus additional 
transaction and surcharge rents). This Lease is currently month-to-month 
and will terminate on September 25, 2000 when the existing International 
Terminal closes. 

(2) ATM Lease L97-0240 with six ATM machines and a MAG of SI 07,451 
(plus additional transaction and surcharge rents Y This lease will terminate 
January 29, 2001. 



64 



Attachment: III 
Page 2 of 2 



Memo to Emiiie Neumann 
May 17, 2000 
Page 2 



Wells Fargo Bank currently has one lease: 

(1) Wells Fargo Bank ATM Lease 97-0293 with 10 ATM machines and a 

MAG of SI 87,472 (plus additional transaction and surcharge rents). This 
lease will terminate February 15, 2001. 

The total amount of rental revenue generated from transaction rents and surcharge rents 
by current leases in calendar year 1999 and paid to the Airport are as follows: 



Tenant/Lease 


Transaction/Surcharge Rent 
Revenue 1999 


Bank of America 
L-82-0039 


S108,080 


Bank of .America 
L97-0240 


$68,926 


Wells Fargo Bank 
L97-0293 


5138,186 


Total 


S315.192 



BIDDTN T G PROCESS 

The Airport offered Invitations to Bid for the Domestic Banking Services to 1 13 firms. 
Staff received one bid from Bank of America, National Association for $261,000. 
Several banks initially showed interest in participating in the bid process but chose not to 
submit bids; no explanation was given for the nonparticipation. 



65 



Attachment IV 



PROPOSED PROVISION FOR BANK OF AMERK V, NATIONAJ 

ASSOCIATION DOMESTIC BANKING LEASE 

RE: ATM SURCHARGES 



The parties acknowledge as follows: in November 1999, the people of the City and County of 
San Francisco found and declared that surcharges imposed by financial institutions on customers 
for accessing an ATM of that financial institution are, among other things, unfair and anti- 
competitive. Based on such findings, the people or the City and County of San Francisco passed 
a law known as Proposition F [ATM fees] ("Proposition F") prohibiting financial institutions 
from imposing such surcharges. The parties agree that if and when Proposition F is deemed by a 
court of competent jurisdiction to be applicable to Tenant's operations at the Airport. City shall 
provide written notice to Tenant of such decision at the address and to the person set forth in the 
notice provision of this Lease. 

Upon receipt of such written notice. Tenant shall have the option to terminate this lease provided 
that Tenant delivers a written termination notice to City within thirty (30) days after receipt of 
the written notice from the City that Proposition F is deemed by a court of competent jurisdiction 
to be applicable to Tenant's operations at the Airport. In the event Tenant fails to deliver a 
written termination notice to City within such 30-day period, then such termination option shall 
be null and of no further force and effect and Tenant shall thereafter abide by such law. In the 
event Tenant does deliver such termination notice within such 30-day period, then this Lease 
shall terminate on the date that is ninety (90) days after City's receipt of such notice from 
Tenant. 

Source : Airport 



66 



Memo to Finance and Labor Committee 

May 24, 2000 Finance and Labor Committee Meeting 

Item 10 - File 99-0252 

Item: Ordinance amending the Administrative Code to require that 

a minimum level of compensation (a "living wage"), 
compensated time off, and health benefits be provided to 
certain employees of contractors providing services to the 
City and County and to be provided by contractors who enter 
into contracts with the City for the exclusive use of property 
owned by the City; and providing that the number of hours of 
services required of General Assistance recipients who are 
performing services in order to maintain eligibility shall be 
calculated using the living wage. 

Description: The proposed ordinance would amend the Administrative 

Code to require that private contractors which have service 
contracts with the City and private firms which have 
property leases for the use of property owned by the City 
provide certain employees with the following: 

• A living wage of $11 per hour which shall be adjusted 
annually by the percentage increase in the Consumer 
Price Index. 

• Either (a) a paid membership in a group health 
insurance plan; or (b) cash in an amount that is no less 
than the individual rate for the base group rate of the 
Health Maintenance Organization (HMO) with the 
most members in California, which is currently Kaiser 
Permanente. Under the proposed ordinance, City 
service contractors and leaseholders would only be 
required to provide such health- insurance benefits to 
employees earning less than the prevailing living wage 
rate (initially $11 per hour). 

• Compensated time off equal to 0.231 days per work 
week (12 days annually) for sick leave, vacation or 
personal necessity; or provide a cash equivalent. 

• Uncompensated time off equal to 0.192 days per work 
week (10 days annually) for sick leave. 

The two types of agreements subject to the ordinance are: (a) 
services contracts, including service contracts supported by 



Board of Supervisors 
Budget Analyst 



Memo to Finance and Labor < lommittee 

May 24, 2000 Finance and Labor Committee Meeting 

grant funds, and (b) property contracts for use of property 
owned by the City, or for which the City has exclusive use, 
for a term exceeding 29 days. The proposed ordinance covers 
only an organization's employees who work on service 
contracts with the City and does not apply to other 
employees of the organization. It covers home health care 
workers employed through the In-Home Supportive Services 
(IHSS) program and employees of companies that lease 
property from the City. The ordinance would be phased in as 
service or lease contracts are renewed. The ordinance would 
exempt City contracts with vendors for the purchase of goods, 
service contractors with five employees or less, and 
contractors who are paid less than $25,000 in annual gross 
receipts by the City. A number of additional exclusions are 
listed on pages 8-11 of the proposed ordinance. 

Comment: The Office of the President of the Board of Supervisors has 

advised the Budgel Analyst that this proposed ordinance has 
been scheduled on the May 24, 2000 Finance and Labor 
Committee agenda for purposes of accepting public 
testimony. 

Further, the Office of the President of the Board of 
Supervisors has informed the Budget Analyst that the 
proposed ordinance will be continued in order to allow 
further time for review and consideration of amendments to 
the proposed ordinance. 

The Budget Analyst will review the amended version of the 
proposed ordinance when it is completed and prepare a final 
report to the Board of Supervisors concerning the potential 
fiscal impact of the proposed living wage ordinance. 



Board of Supervisors 

Budget Analyst 

68 



Memo to Finance and Labor Committee 

May 24, 2000 Finance and Labor Committee Meeting 

Item 11 - File 00-0841 






Department: 
Item: 

Description: 



Comments: 



Mayor's Office of Public Finance 

Resolution declaring the intent of the City and County of 
San Francisco to reimburse certain expenditures from 
proceeds of future indebtedness. 

On March 7, 2000, San Francisco voters approved 
Proposition B which authorized the City to issue up to 
$87,445,000 in General Obligation Bonds to finance 
capital improvements to the California Academy of 
Sciences (the Academy), located in Golden Gate Park. 
The subject resolution would authorize the City to 
reimburse the Academy from the proceeds of bonds to be 
issued pursuant to Proposition B if the Academy advances 
funds from its own sources for capital improvement costs 
prior to the City's issuance of bonds on behalf of the 
Academy. According to Mr. Malcolm Carson of the City 
Attorney's Office, the subject resolution meets the 
requirements of Section 1.150-2 of the Treasury 
Regulations pertaining to tax-exempt bonds which 
requires the Board of Supervisors to declare its 
reasonable official intent to reimburse prior expenditures 
advanced by the Academy from the proceeds of General 
Obhgation Bonds. 

1. Financing for a renovated, seismically upgraded, and 
expanded 428,443 square foot Academy facility (the 
existing facility is 378,443 square feet), at an estimated 
cost of $147,445,000, would be funded by (a) the 
$87,445,000 General Obligation 'Bonds 1 , and (b) private 
financing in the amount of $60,000,000 to be raised by the 
Academy through private contributions and other 
government funds. According to Ms. Karen Ribble of the 
Mayor's Office, the City anticipates two bond issuances on 
behalf of the Academy, the first in the Fall of 2000 (for 
approximately $11,750,000), and the second in the Fall of 
2001 (for approximately $75,695,000). 



1 The $87,445,000 par amount of the bond consists of (a) $86,230,000 for project costs, and (b) 
$1,215,000 for the underwriter's discount and the costs of issuance. 

BOARD OF SUPERVISORS 

BUDGET ANALYST 

69 



Memo to Finance and Labor Committee 

May 24, 2000 Finance and Labor Committee Meeting 



2. According to Ms. Ribble, the first bonds will not be 
issued until the Fall of 2000 and the City intends to 
commence planning work prior to that date. The 
Academy will hire consultants to undertake 
environmental and hazardous materials studies, obtain 
the necessary permits, and commence design work prior 
to issuance of the General Obligation Bonds. According to 
Ms. Ribble, funding for anticipated expenditures of 
approximately $2,200,000 from July to December of 2000 
would initially be advanced by the Academy. The 
proposed resolution would authorize the City to reimburse 
the Academy from the General Obligation Bond proceeds 
for some or all of the expenditures advanced by the 
Academy, subject to the appropriation approval of the 
Board of Supervisors. Ms. Ribble states than no work has 
ye1 been performed on the Academy renovation and 
expansion. 



Recommendation: Approve the proposed resolution. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

70 



Memo to Finance and Labor Committee 

May 24, 2000 Finance and Labor Committee Meeting 

Item 12 - File 00-0842 



Department: 
Item: 



Port of San Francisco 

Hearing to consider the release of reserved funds in the amount 
of $202,900 to remove and replace wooden stairs, a structural 
landing and an exit door for the Port's Agricultural Building 
that have been determined as unusable following the winter 
storms in Februarv of 1998. 



Amount: 
Source of Funds: 
Description: 



Budget: 



$202,900 

San Francisco Harbor Operating Fund 

In November of 1996, (File 101-96-19) the Board of Supervisors 
placed $1,329,000 on reserve for capital improvement projects 
pending the Port's selection of contractors, the MBE/WBE status 
of the contractors and the submission of budget details. 

According to the Port's Engineering Department, in February of 
1998 winter storms damaged and rendered unusable the wooden 
stairs, landing structure and exit door, at the Port's Agricultural 
Building. This repair project consists of removing the existing 
damaged wooden stairs and existing exit door and replacing 
them by constructing new galvanized metal stairs and a 
structural landing and a new exit door in order to comply with 
the City's Building Code. 

A summary budget for this project is as follows: 

Hazardous Material Abatement $7,940 

Construction Management/Inspection 16,000 

Subtotal $23,940 



Construction Contract: Replacement 
Door, Install Door and Stair Rail 
10% contingency 

Subtotal 

Total Project Cost 



$162,691 

16.269 

$178,960 



$202,900 



Attachment I provided by the Port is the bid summary document 
for the construction contract amount of $162,691. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 24, 2000 Finance and Labor Committee Meeting 

Comments: 1. According to Ms. Imam Haygood of the Port, the Agricultural 

Building is leased to private tenants of the Port. The stairs and 
landing structure serve as the required fire exit from the east 
entry, in back of the Agricultural Building's second story, to the 
roadway below. 

2. Ms Haygood states that on February 2, 2000, the Port issued 
an Invitation for Bids to repair the damaged stair-, exit door 
and structural landing, The RFP was sent to the list of approved 
Human Rights Commission (HRC) contractors, minority 
newspapers, trade journals and construction related 
publications. The subcontracting goals for this project were 18 
percent MBE participation and seven percent WBB 
participation. <>n March 16, 2000 six bids were received by the 
Port. The Port engineering staff and (HRC) reviewed the bids 
and Homer -I Olsen, Inc.. was selected as the lowest, responsive* 
responsible bidder meeting the subcontracting goals in the 
amount of $162,691. The following table lists the contractors 
and their MBE/WBE subcontracting participation: 

Contractor Quotation Subcontracting Status 

Biller Mi • $154,775 Non Responsive 

Homer J. Olsen $162,691 18% MBE, 7.9% WBE 

Adolph Schmidt $193,000 Non Responsive 

GMI Construction $199,999 32% MBE 

Miller Thompson $204,000 24% MBE, 8% WBE 

L&B Engineering $228,000 33% MBE 

3. Ms. Haygood notes that of the $1,329,000 placed on reserve 
for capital improvement projects in November of 1996, (File 101- 
96-19), the Board of Supervisors approved the release in May of 
1998 of $203,582. $1,125,418 remains on reserve. According to 
Ms. Haygood, the stair replacement project was one of the 
capital improvement projects identified in the original reserved 
amount of SI. 329, 000 in November of 1996. The stairs were in 1 
need of repair, hut were in working condition. The damage from : 
the storms of February of 1998, however, rendered the stairs 
unusable. 

4. Ms. Alex Lee of the Port, provides in Attachment II an 
explanation of the delay in moving this project forward. The 
Bureau of Architecture began designing a repair project to fix 
the damaged stairs and landing. Further review by the Port's 
Engineering Department determined that there had been! 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

72 



Memo to Finance and Labor Committee 

May 24, 2000 Finance and Labor Committee Meeting 



extensive damage to the substructure supporting the stairs and 
it is necessary to replace the stairs, landing and exit door. The 
Port has completed additional replacement design work which 
was begun by the Bureau of Architecture. 



Recommendation: Approve the proposed resolution. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

73 




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Attacnmenc 11 



To: Bryce Sutherland 

From: Alex Lee ^ ^ j 

Subject: Agricultural Building Stair. 

In April of 1998, the Port contracted with the Bureau of Architecture to 
design a repair to fix the stairs and landing. At the time, the Port's 
Engineering Department was busy with the Ferry Plaza seismic upgrade 
project and the Ferry Building Shear Wall Project. During the design 
phase, the Port's Engineering Department found extensive damage to the 
substructure that support the stair and landing. The project had to be 
redesigned to completely replaced the stairway, landing, and exit door. 
The redesign by the Bureau of Architecture took longer then expected, due 
to the reinspection of the substructure and recalculations of the earthquake 
loads. In August of 1999, Port staff was available to take on this project. 
The Port took the project back from the Bureau of Architecture and 
completed the design. The Port also prepared specifications and bidding 
documents to advertised the job in February. 



76 



Memo to Finance and Labor Committee 

May 24, 2000 Finance and Labor Committee Meeting 



Item 13 - File 00-0629 

Department: 

Item: 



Description: 



Recreation and Parks Department (RPD) 

Ordinance amending Part II, Chapter VI of the San 
Francisco Municipal Code (Park Code) to set fees for rides 
on the Golden Gate Park Carrousel at $0.25 for children 
and $1.50 for adults, which keeps the fee for children at 
its current level and raises the fee for adults by $0.50 
from $1.00 to $1.50. 

The Golden Gate Park Carrousel is a Herschell-Spillman 
Carrousel that was constructed in 1912 in upstate New 
York. After operating in Los Angeles and Portland, 
Oregon, it was featured at the 1939 World's Fair at 
Treasure Island and then moved to the Children's 
Playground in Golden Gate Park in 1941. The Carrousel 
underwent a major seven-year mechanical and artistic 
restoration in the late 1970s and early 1980s. Additional 
mechanical improvements, including the renovation of the 
Band Organ, were made in 1998. An ongoing preventive 
maintenance program has been prepared by RPD to 
ensure the future of the carrousel, called by at least one 
historian the "Rolls Royce of American carrousels". In its 
current condition, the carrousel requires a total of 
$299,880 in restoration work within the next 5 years, 
primarily to the carrousel building roof. Any further 
delay would risk damage to the carrousel itself, according 
to the Office of the City Architect. An additional $109,790 
in non-urgent work has been suggested by the Office of 
the City Architect. 

According to Mr. Chris Mack of RPD, the City's income 
from ticket and food sales in FY 1998-1999 was 
approximately $70,076, while the cost to the City of 
operating the carousel that same year was approximately 
$86,236. Additionally, restoration work during FY 1998- 
1999 totaled $131,413. This left RPD with a carrousel 
operations and restoration deficit of $147,573, which was 
funded in part from donations ($131,413 from Friends of 
Recreation and Parks and from the Friedman Family), 
and partly from the RPD budget ($16,160). 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 24, 2000 Finance and Labor Committee Meeting 



According to Mr. Mack, FY 1999-2000 expenditures are 
estimated at $116,733 while revenues are estimated at 
$68,520, resulting in a deficit of $48,213. 

For FY 2000-2001, RPD has tentatively selected a new 
contractor through a Request For Proposal for operation 
and general maintenance of the carrousel. The new 
contractor would operate and maintain the carrousel for 
80 percent of ticket sales 1 , along with percentages of other 
sources of income associated with the carrousel. 
According to the terms of the new proposed agreement, 
RPD estimates that the cost< to the City of operating the 
carousel in Fiscal Year 2000-2001 to be approximately 
$6,183 for miscellaneous RPD expenditures, while the 
City's net income from ticket sales, food sales, 
merchandise Bales, and hosting children's parties (after 
payment to the operator) would be $55,150. Additionally. 
RPD plans to perform restoration work on the carrousel in 
FY 2000-2001 with the n.w net revenue of $48,967. 
Performance of this restoration work in FY 2000-2001 
would provide additional revenue for the restoration work 
needed for the carrousel in the next 5 years. 

The proposed ordinance would increase the Golden Gate 
Carrousel fees for adults by $.50, or 50 percent, from 
$1.00 to $1.50. The child rate of $.25 would remain 
unchanged. This would increase the projected income 
from carousel operations for Fiscal Year 2000-2001 by 
$7,050 from $55,150 to $62,200. or by 13 percent. This 
would enable RPD to spend $56,017 on restoration work 
($62,200 less $6,183 for expenses). The proposed fee 
increase would provide additional revenue for restoration 
work needed for the carrousel in the next 5 years. 



1 This applies for the first $80,000. The contractor receives 85 percent of gross ticket sales exceeding 
$80,000. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

78 



Memo to Finance and Labor Committee 

May 24, 2000 Finance and Labor Committee Meeting 



Comment: 



1. The attachment, provided by RPD, is a comparison of 
fee structures for other carousel operations. The proposed 
fee increase would make the Golden Gate Park Carousel 
similar in fee structure to other carousels surveyed by 
RPD. 



2. According to Mr. Mack, the proposed fee increase would 
be the first increase in Golden Gate Park Carrousel fees 
since 1984. 

3. The estimated increased revenue of $7,050 that would 
be realized by the proposed ordinance in FY 2000-2001 
has not been included in RPD's proposed FY 2000-01 
budget. According to Mr. Mack, RPD would adjust its 
budget if the Board of Supervisors approves the proposed 
ordinance. 



Recommendation: 



Approval of the proposed ordinance is a policy matter for 
the Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

79 



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Memo to Finance Committee and Labor Committee 
May 24, 2000 Finance and Labor Committee Meeting 

Item 14 - File 00-0851 



Department: 

Item: 

Location: 

Purpose of Lease: 

Lessor: 
Lessee: 



No. of Sq. Ft. and 
Cost Per Month: 

Annual Cost: 

Annual 

Rent Increases: 

Utilities: 



City Attorney 

Real Estate Division of the Department of Administrative 

Services (RED) 

Resolution authorizing a renewal of an existing lease for 
office space at 1390 Market Street (Fox Plaza) for the City 
Attorney's Office for a term of seven years. 

The proposed lease is for the rental of office space at 1390 
Market Street. 

Renew existing lease for City Attorney at 1390 Market 
Street for office space. 

CalFox, Inc. 

City and County of San Francisco, acting by and through 
the City Attorney's Office. 

62,814 square feet at a monthly rental rate of $231,784 
(approximately $3.69 per square foot). 

$2,781,404 



None 

Electricity costs will be paid by the City for approximately 
48,265 square feet of space that is separately metered. The 
cost of electricity would be between $0.50 and $0.60 per 
square foot annually for 48,265 square feet that is 
separately metered. This would amount to between $24,133 
and $28,959 annually. The landlord would pay electricity 
cost for the remaining 14,549 square feet of space. 



Janitorial Services: Paid by the Landlord. 

Term of Lease: Seven Years (January 1, 2001 through December 31, 2007). 

Right of Renewal: Option for a five year extension. 

Source of Funds: Proposed budget of the City Attorney for FY 2000 - 2001. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

81 



Memo to Finance Committee and Labor Commits ■<■ 
May 24, 2000 Finance and Labor Committee Meeting 

Description: The proposed resolution would authorize a seven-year lease 

renewal of existing office space of 62,814 square feet for the 
City Attorney's Office at 1390 Market Street in the building 
known as Fox Plaza. 

Comments: 1. According to Mr. Charlie Dunn of the Department of Real 

Estate, the proposed lease agreement is for 62,814 square 
feet of office space on the 2 nd , 4 th , 5 th , 6 th , and 10 th floors 
located at 1390 Market Street. 

2. According to Mr. Dunn, the current lease agreement for 
office space for the City Attorney at 1390 Market Street is 
for the period January 1. 1994 through December 31, 2000. 
The current monthly cost of $84,301 ($1,011,612 annually) 
includes 61,149 square feet at approximately $1.38 per 
square foot, per month. Approval of the proposed lease 
would result in 1.665 of additional square feet. Total 
monthly rent per square foot would increase by 
approximately $2.31 per square foot from $1.38 to $3.69 or 
167 percent and total annual rent would increase by 
$1,769,792 from $1,011,612 to $2,781,404 or approximately 
a 175 percent increase. 

3. According to Mr. Dunn, the City is authorized under the 
lease agreement to enter into a permit agreement with the 
Marin Day Schools for a licensed infant childcare facility to 
be provided on the second floor of 1390 Market Street 
consisting of approximately 500 square feet for a license fee 
payable to the City of $1 per year for the proposed permit 
agreement. The existing permit agreement between the 
City and Mann Day Schools is also for 500 square feet of 
space at an annual cost of $1. 

4. Mr. Dunn notes that there will be no base rent increases 
during the seven-year lease term. If the City accepts the 
five-year extension option in the proposed lease agreement, 
beginning January 1. 2008 through December 31, 2012. the 
rent would be adjusted to the prevailing market rate 1 for 



1 The method by which the prevailing rate will be determined is described in detail in a standard 
DRE provision in the lease agreement. According to Ms. Claudine Venegas of DRE, the provision 
states: (a) that if the parties cannot agree as to the prevailing market rent, each shall select an 
appraiser, (b) that if the two appraisals differ by less than 10%. the average shaD be the prevailing 
market rent, and (c) that if the appraisals differ by more than 10%. then the appraisers shall select a 
third appraiser, and the third appraisal shall be averaged with the closer of the two previous 
appraisals for the prevailing market rent. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

82 



Memo to Finance Committee and Labor Committee 
May 24, 2000 Finance and Labor Committee Meeting 



space of comparable size, location, and quality within the 
Civic Center area of San Francisco. 

6. Mr. Dunn has stated that the proposed lease represents 
fair market rental value. 



Recommendation: Approve the proposed resolution. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

83 



Memo to Finance and Labor Committee 

May 24, 2000 Finance and Labor Committee Meeting 

Item 15 - File 00-0848 



Department: 

Item: 

Location: 
Purpose of Lease: 

Lessor: 

Lessee: 

No. of Sq. Ft. and 
Cost Per Month: 

Annual Cost: 

Utilities and Janitor 
Provided by Lessor: 

Term of Lease: 
Right of Renewal: 



Department of Real Estate (DRE) 
Department of City Planning 
Public Library 

Resolution authorizing a new lease of real property at 
1649 Ocean Avenue for the Ingleside Branch Public 
Library'. 

1649 Ocean Avenue, San Francisco 

To permit the Public Library to lease the entire building 
at 1649 Ocean Avenue (exclusive of the mezzanine) for 
use as the Ingleside Branch Public Library-. 

Lan Fong Huey 

City and County of San Francisco 



Approximately 5,000 square feet at $7,300 per month 
($1.46 per square foot). The rental rate is annually 
adjustable in accordance with the Consumer Price Index 
for the San Francisco-Oakland-San Jose area. 

$87,600 ($17.52 per square foot) 



None 

Ten years, commencing upon approval by the Board of 
Supervisors and substantial completion of leasehold 
improvements, expiring in approximately November of 
2010. 

Lender the subject lease, the City would have the right to 
extend the lease term by two additional terms of five 
years each, provided that the City (a) gives the lessor 180 
days advance notice, and (b) agrees to a rental rate which 
is 95 percent of the prevailing market rate, as determined 
by negotiations between the City and the Landlord with 
the assistance of independent appraisers if necessary 
(following the process set out in Section 4.3 of the 
proposed lease agreement). 

BOARD OF SUPERVISORS 



BUDGETg^NALYST 



Memo to Finance and Labor Committee 

May 24, 2000 Finance and Labor Committee Meeting 



Source of Funds: 
Description: 



Library Preservation Fund 

The subject lease would authorize the Public Library to 
relocate the Ingleside Branch Public Library from its 
current 1,975 square foot location at 387 Ashton Avenue, 
Ingleside, to an approximately 5,000 square foot location 
at 1649 Ocean Avenue. 



Comments: 



1. Mr. George Nichols of the Public Library states that 
the 387 Ashton Avenue lease expires on November 30, 
2000. The landlord of 387 Ashton Avenue intends to 
increase the building's rent from the current $1.08 per 
square foot to bring it into line with the fair market value 
for commercial space in the area which is estimated by 
the Department of Real Estate to be between $1.75 and 
$2.00 per square foot, as compared to the proposed rental 
rate per square foot of $1.46 at 1649 Ocean Avenue. In 
addition, Mr. Nichols states that 387 Ashton Avenue (a) 
has an inadequate electrical system to handle the 
technology improvements slated for the branch libraries, 
(b) is not fully compliant with the requirements of the 
Americans with Disabilities Act (ADA), (c) has limited 
space for reading, studying, public access computers, or 
public programs, and (d) cannot be expanded. 

By contrast, Mr. Nichols states that the proposed 1649 
Ocean Avenue building (a) is a more visible location for 
the branch library and the proposed relocation has the 
support of the local community, (b) has approximately 153 
percent more space, and (c) can be made fully compliant 
with ADA requirements. 

2. The subject lease provides for tenant improvements to 
be constructed by the landlord at an estimated cost of 
$250,000 which comprises (a) $150,000 for ADA 
compliance upgrades, and (b) $100,000 for other tenant 
improvements. The estimated monthly rent of $1.46 per 
square foot comprises (a) a base monthly rent of $1.20 per 
square foot (inclusive of ADA compliance upgrade costs), 
plus (b) $0.26 per square foot for the other tenant 
improvements. 

3. The estimated cost of furniture, fixtures, and 
equipment for the 1649 Ocean Avenue location is 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

85 



Memo to Finance and Labor Committee 

May 24, 2000 Finance and Labor Committee Meeting 

$145,000, as shown in the attached budget provided by 
the Library. Funding in the amount of $145,000 has been 
reserved by the Board of Supervisors (File 00-0615) 
pending Board of Supervisors approval of the subject 
lease. Mr. Nichols states that existing furniture, fixtures, 
and equipment being used at the Ingleside Branch 
Library's Ashton Street location which can be salvaged 
would, wherever possible, be either reused at the Ocean 
Avenue location, redistributed to other branch libraries 
thai might be able to use them, or turned over to the 
Purchasing Department as BUrpluB property 

4. Ms. Claudine Venegas of DRE states that the proposed 
rent represents fair market value. 

Recommendation: Approve the proposed resolution. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

86 



ESGLESIDE BRANCH LIBRARY 

Furniture. Fixtures. & Equipment 

Telecomm (moving data circuits, installing T-l lines, DTIS infrastructure, 

telephone system move, equipment upgrades) S3 5.000 

Intrusion alarm (exterior) . S8.000 

Ugrade kitchen, plumbing, cabinets, counter, appliances So. 000 

Exterior and interior signage S8.000 

Moving and shelf installation S 1 6.000 

Shelving SI 0,000 

Modify and move existing reference/circulation counter/desk (OVT model) S 10.000 

Modify door hardware S2.000 

New Public area tables and chairs S20.000 

Project management fees (DPW-BOE) S30.Q00 

Total S145.000 



87 



Memo to Finance and Labor Committee 

May 24, 2000 Finance and Labor Committee Meeting 

Item 16 - File 00-0795 



Department: 



Real Estate Division of the Department of Administrative 

Services 
Planning Department 
City Attorney 



Item: 



Resolution approving the transfer of title to real property 
located at 1950 Mission Street, San Francisco, from the City and 
County of San Francisco to the San Francisco Unified School 
District. 



Amount: 
Description: 



None 



This proposed resolution would authorize a transfer, through 
the execution of a quitclaim deed, of City-owned property known 
as Assessor's Block 3554. Lot 5, located at 1950 Mission Street 
to the San Francisco Unified School District (SFUSD), at no cost 
to SFUSD. The property, located between 16 th Street and 17 th 
Street, is a paved lot consisting of 36,400 square feet. There are 
currently seven portable classrooms on the property comprising 
14,625 square feet. The subject property has been utilized by 
SFUSD for various uses since the City acquired the property in 
1860. The SFUSD currently uses the site for various counseling 
services. 



Comments: 



In September of 1999. the SFUSD Board of Education declared 
the property surplus, and plans to sell the property through a 
public auction. 

1. According to Mr. Jerry Romani of the Real Estate Division, 
the City constructed various school-related facilities on the 
property as early as 1860. In 1910 the City replaced the facilities 
destroyed in the 1906 earthquake and in 1972 the City 
demolished the unsafe facilities and replaced them with portable 
classrooms. 



2. According to Ms. Amy Brown of the City Attorneys Office, the 
City Attorney has advised in a legal opinion that real property 
acquired or used for school purposes becomes public school 
property and that the holder of legal title, in this instance, the 
City, acts as trustee for the legal owner, the State of California, 
which acts through SFUSD. Thus, per the City Attorney's 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

May 24, 2000 Finance and Labor Committee Meeting 



opinion, the City is merely a passive trustee and has a duty to 
execute deeds or leases at the direction of SFUSD. 

3. According to Mr. Amit Ghosh of the Planning Department, the 
proposed quitclaim deed is in conformity with the City's General 
Plan. 

4. According to Ms. Lisa Gibson of the Planning Department, the 
property is zoned RC-4 (High Density Residential). 



Recommendation: Approve the proposed resolution. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

89 



Memo to Finance and Labor < lommil 

May 24, 2000 Finance and Labor Committee Meeting 

Item 17 - File 00-0601 

Item: Hearing to consider Proposition A funds for tobacco 

prevention and control. 

Description: Proposition A, approved by the San Francisco voters in 

November of 1999 requires that all tobacco settlement 
monies, received by the City, after $1 million is set aside 
each year for smoking, education, prevention and control 
programs, be used to pay for construction of a new 
Laguna Honda Hospital facility Item 3, File 00-0772 of 
this Finance and Labor Committee report contains a 
supplemental appropriation for $9,243,481 of the Tobacco 
Settlement Funds for architectural, engineering and 
construction costs for the Laguna Honda Hospital Project. 
The subject hearing is to discuss the SI million annual 
appropriation for tobacco prevention and control 
program- 

The Department of Public Health (DPH) has proposed 
that the $1 million annual appropriation of Proposition A 
funds, subject to appropriation approved by the Board of 
Supervisors, be administered by DPH's Tobacco Free 
Project, which has been responsible for implementing the 
Proposition 99 State Tobacco Tax funded program since 
1989. DPH reports that the Proposition 99 allocations 
have declined from $1.6 million in FY 1989-90 to 
$638,000 in FY 1999-2000. a $962,000 reduction or 
approximately 60 percent. DPH is therefore proposing, as 
shown in the Attachment, that the $1 million Proposition 
A funding for FY 2000-01 be used to pay for portions of 
existing staff positions and operating expenses of the 
DPH Tobacco Free Project to offset reductions in 
Proposition 99 allocations and to minimize funding 
reductions for community organizations who provide 
related contractual services to DPH. As shown in the 
Attachment, the Program would be divided into four 
sections: (1) Program. (2) Enforcement. (3) Cessation and 
(4) Administrative. Ms. Tangerine Brigham of DPH 
advises that representatives from DPH will attend the 
May 24. 2000 Finance and Labor Committee to respond to 
any questions from the Committee. 



BOARD OF SUPERVISORS 

BUDGET ANALYSYT 

90 



Memo to Finance and Labor Committee 

May 24, 2000 Finance and Labor Committee Meeting 




Larvev M. Rose 



Supervisor Yee 
Supervisor Bierman 
President Ammiano 
Clerk of the Board 
Controller 
Steve Kawa 



BOARD OF SUPERVISORS 
BUDGET ANALYSYT 

91 



Attachment 







Budget Overview 








Salaries 

Class/Title 

2825 Senior Health Educator. 


FTE 
2 


Program 

54,895 


Enforcement Cessation 




Administrative 

S7,343 


Amount 
S12,238 


2822 Health Educator 


1 


S30.680 





$30,680 





S61.360 


2891 - Health Program 
Coordinator II 


.5 


523,254 








55,814 


S29.068 


1426 - Senior Clerk Typist 


.5 











$21,471 


$21,471 


6122 - Senior Environmental 
Health Inspector. 


.25 





518,789 








518,789 


6120- Environmental Health 
Inspector 


-.39 





525,066 








S25,066 


Total Salaries 
Fringe @ 25% 
Subtotal Personnel 


2.84 


558,829 
SI 4,707 
S73.536 


543,855 
510,963 
$54,818 


530,680 

57,670 

S38,350 


$34,628 

S8.658 
S43,286 


$167,992 

$41,998 

S209,990 


Operating Costs 













S22,678 


S22,678 


Sub-Total Pers. & Operating 




$73,536 


$54,818 


$38,350 


S65,964 


S2 3 2, 668 


Professional Services 




Com. Based 


Enforcement 


Cessation 







Evaluation Services 
Media Services 
Community Based Services 
Subtotal Professional Services 



Programs 

$40,000 

$109,200 

S350,506 $43,186 

S499.706 S43,186 



Services to Other Departments 
fWorkorders) 

Police Department 
Dept. of Consumer Assurance 
City Attorneys Office 
Subtotal Srvs. Other Depts. 






SI 8,000 







588,800 








S~:.640 







5179,440 






S18,00( 
S88.80' 



SF Unified School District 

Communitv-Based Programs 



S45,000 



S45,0C 



Sub-Total Professional Sens. 
Total 



$544,706 
S618,242 



SI 79,440 
$234,258 



$43,186 
581,536 



S65.964 



$7t 
Sl.000.01 



l/ah/setllement/plan doc 



92 




[All Committees] 

Government Document Section 
City and County of San Francisco Main Librar y 
Meeting Minutes 
Finance and Labor Committee 94102-1689 

Members: Supervisors Leland Yee, Sue Bierman, Tom Ammiano 
Clerk: Mary Red 



Wednesday, May 31, 2000 



10:00 AM 
Regular Meeting 



City Hall, Room 263 



Members Present: Leland Y. Yee, Sue Bierman, Tom Ammiano. 



Meeting Convened 



000930 



The meting convened at 10:07 a.m. 



DOCUMENTS DEPT 

JUN - 5 2000 

SAN FRANCISCO 
PUBLIC LIBRARY 



[General Obligation Bonds Award - School/Zoo/Park| 

Motion awarding Bonds and fixing definitive interest rates for $29,605,000 General Obligation Bonds 

(Educational Facilities Bonds, 1997 - Community College District), Series 2000A; $17,440,000 General 

Obligation Bonds (Zoo Facilities Bonds, 1997) Series 2000B; $6,180,000 General Obligation Bonds 

(Neighborhood Recreation and Park Facilities Improvement Bonds, 2000) Series 2000C. (Mayor) 

5/17/00, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Karen Ribble, Mayor's Office of Finance. 

Amendment of the Whole. 

AMENDED, AN AMENDMENT OF THE WHOLE BEARING SAME TITLE. 

AWARDED by the following vote: 

Ayes: 3 - Yee, Bierman, Ammiano 



000765 [Budget Workshop - May 31, 2000] 
Supervisor Yee 

Hearing to consider a budget workshop on the Department of Public Health on Wednesday, May 31st, at 10:00 

a.m. 

4/24/00, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Dr. Mitchell Katz, Director of Health; Supervisor Yee; Supervisor Ammiano; 

Ken Jenson, Financial Officer, Community Health Network; Monique Zmuda, Chief Financial Officer, 

Department of Public Health; Barbara Rothkrue, Nurse; Change Martin, Coalition on Homelessness (COH); 

Darren Lewis, (COH); Kym Valadez, Swords to Plowshares; Rosemary Dady, Bay Area Legal Aid; L.S. 

Wilson (COH); Barbara Arms, Campaign to Abolish Poverty; Michael Wise, S.F. Network of Mental Health 

Clinics/Spiritmendors; Alan Gella. M.D., San Francisco General Hospital (SFGH); Helen Brook; Dr. Meg 

Newman (SFGH); Eve Meyer; Lidia Zenteno, S. F. Organizing Project; Jason Hataye; Jennifer Friedenbach; 

Delphene Brody; Marykate Connor, Caduceus Outreach Services; Chris Daly, Mission Agenda. Terry 

Mitchell, Treatment on Demand; Keith Savage, Coalition on Homelessness; Dwayne Kaufman; Nora Roman. 

Nurse (SFGH); Shannon Coughlin; Bob Hernandez, Local 790; Supervisor Bierman. 

FILED by the following vote: 

Ayes: 3 - Yee, Bierman, Ammiano 



City and County of San Francisco 



Printed at 4:06 PM on 6/1/00 



Finance and Labor Committee Mttttng Minutes May .?/, 2000 

ADJOURNMENT 

The meeting adjourned at 12:30 p.m. 



City and County of San Francisco 2 Printed at 4:06 P.M on 6 7 TW 



,26^ 



he 



[Budget Analyst Report] 

Susan Horn 

Main Library-Govt. Doc. Section 



CITY AND COUNTY 




OF SAN FRANCISCO 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

1390 Market Street, Suite 1025, San Francisco, CA 94102 (415) 554-7642 
FAX (415) 252-0461 



May 25, 2000 
TO: . Finance and Labor Committee 

FROM: ^Budget Analyst 

SUBJECT: May 31, 2000 Finance and Labor Committee Meeting 
Item 1 - File 00-0930 



DOCUMENTS DEPT. 

MAY 3 1 2000 

SAN FRANCISCO 
PUBLIC LIBRARY 



Department: 
Item: 



Description: 



Mayor's Office of Public Finance 

Motion awarding bonds and fixing definitive interest 
rates for $29,605,000 General Obligation Bonds 
(Educational Facilities Bonds, 1997 - Community College 
District), Series 2000A; $17,440,000 General Obligation 
Bonds (Zoo Facilities Bonds, 1997) Series 2000B; and 
$6,180,000 General Obligation Bonds (Neighborhood 
Recreation and Park Facilities Improvement Bonds, 2000) 
Series 2000C. 

On May 1, 2000, the Board of Supervisors approved three 
resolutions authorizing and directing the sale of up to 
$53,225,000 in General Obligation Bonds as follows: 

• $29,605,000 in General Obligation Bonds (Educational 
Facilities Bonds, 1997 - Community College District), 
Series 2000A, to fund land acquisition for two 
Community College District campuses in Chinatown 
and the Mission District, and various renovations and 
facilities' upgrades of existing Community College 
District facilities (File 00-0677); 



Memo to Finance and Labor Committee 

May 31, 2000 Finance and Labor Committee Meeting 



Comments: 



Recommendation: 



• $17,440,000 in General Obligation Bonds (Zoo 
Facilities Bonds, 1997) Series 2000B, to fund various 
capital improvement projects at the Zoo (FUe 00-678); 
and 

• $6,180,000 in General ObUgation Bonds 
(Neighborhood Recreation and Park Facilities 
Improvement Bonds, 2000) Series 2000C to fund 
acquisition, design, and construction costs of various 
City recreation facilities (File 00-0679). 

Ms. Karen Ribble of the Mayor's Office of Public Finance 
advises that the bids for the proposed bonds are scheduled 
to be opened at 8:00 a.m. on Wednesday, May 31, 2000. 
According to Ms. Ribble, unless all of the bids are rejected, 
the Finance and Labor Committee will be asked to award 
the bonds to the bidder whose bid represents the lowest 
true interest cost to the City. Ms. Ribble reports that the 
Mayor's Office of Public Finance wdl submit an 
Amendment of the Whole to the Finance and Labor 
Committee's scheduled meeting at 10:00 a.m. on 
Wednesday, May 31, 2000, which will list the winning 
bidder, the other bidders and the interest rate that each 
bidder offered to the City. Additionally, at the 
Wednesday, May 31, 2000 Finance and Labor Committee 
meeting, the Mayor's Office of Public Finance will provide 
the debt service payment schedule, including the bond 
maturity dates, principal amounts and interest rates. 

Approve a motion which awards the subject bonds to the 
low bidder, which represents the lowest true interest cost 
"to the City 




Harvey M. Rose 



Supervisor Yee 
Supervisor Bierman 
President Ammiano 
Clerk of the Board 
Controller 
Steve Kawa 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

2 




City and County of San Francisco 

Meeting Minutes 

Finance and Labor Committee 

Members: Supervisors Leland Yee, Sue Merman, Tom Ammiano 
Clerk: Mary Red 



City Hall 

1 Dr. Carlton B. 

Goodlett Place 

San Francisco, CA 

94102-4689 



Thursday, June 01, 2000 



10:00 AM City Hall, Legislative Chamber - 2nd Floor 

Regular Meeting 



Members Present: Leland Y. Yee, Sue Bierman. 
Members Absent: Tom Ammiano. 



Meeting Convened 

The meeting convened at 10:05 a.m. 

000767 [Budget Workshop - June 1, 2000] 
Supervisor Yee 

Hearing to consider a budget workshop on the Department of Human Services on Thursday, June 1st, at 10:00 

a.m. 

4/24/00, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Will Lightbourne. Director. Department of Human Services: Supervisor Yee: 

Bill Bettencourt, Deputy Director, Family Services; Lucy Garcia; Jessica Erwin: Leroy Moore; Supervisor 

Bierman; Joseph Bolden. 

FILED by the following vote: 

Ayes: 2 - Yee, Bierman 

Absent: 1 - Ammiano 



ADJOURNMENT 

The meeting adjourned at 11:13 a.m. 



DOCUMENTS DEPT. 

JUN - 5 2000 

SAN FRANCISCO 
PUBLIC LIBRARY 



City and County of San Francisco 



Printed at 3:2' PSt on 6/1/00 




City and County of $an Francisco 

Meeting Minutes 
JFinance and Labor Committee 

Members: Supervisors I. eland Yee, Sue Merman, Tom Ammiano 
Clerk: Mary Red 



City Hall 

1 Dr. Carlton B 

Goodlett Place 

San Francisco, CA 

94102-4689 



Wednesday, June 07, 2000 



10:00 AM 

Regular Meeting/Budget Workshop 



City Hall, Room 263 



Members Present: Leland Y. Yee, Sue Bierman, Tom Ammiano 



DOCUMENTS DEPT. 



Meeting Convened 

The meeting convened at 10:04 a.m. 



JAN 2 4 2001 

SAN FRANCISCO 
p UBLIC LIBRARY 



000892 [Designating the Official Newspaper for Type 1 - Consecutive Day Advertising for Fiscal Year 2000- 
2001] 

Resolution designating the official newspaper of the City and County of San Francisco for specified categories 
of advertising, commending July 1, 2000. (Purchaser) 
5/12/00, RECEIVED AND ASSIGNED to Finance and Labor Committee 

Heard in Committee: Speakers: Harvey Rose, Budget Analyst; Michael Ward, Assistant Director, Purchasing 
Department: Supervisor Ammiano; Supervisor Yee; Ed Lee, Purchaser; Carmen Ruiz, Editor, El Latino; June 
Howard, CA. Newspaper Service Bureau: Clementina Garcia; Bland Piatt, Wayne Wash, Independent; Ted 
Lakey, Deputy City Attorney Amended to designate the S F. Examiner as official newspaper for Type I 
advertisements; new title 
AMENDED. 

Resolution designating the San Francisco Examiner as the official newspaper of the City and County of San 
Francisco for specified categories of advertising, commending July 1, 2000. (Purchaser) 
RECOMMENDED AS AMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



000893 [Designating the San Francisco Independent as the Official Newspaper for Type 2 - Non-consecutive Day 
Advertising, for Fiscal Year 2000-2001] 

Resolution designating the San Francisco Independent to be the official newspaper of the City and County of 
San Francisco for specified categories of advertising, commencing July 1, 2000. (Purchaser) 

(Fiscal impact.) 

5/12/00, RECEIVED AND ASSIGNED to Finance and Labor Committee 

Heard in Committee: Speakers: Harvey Rose, Budget Analyst; Michael Ward, Assistant Director, Purchasing 
Department; Supervisor Ammiano; Supervisor Yee; Ed Lee, Purchaser; Carmen Ruiz. Editor, El Latino: June 
Howard, CA. Newspaper Service Bureau; Clementina Garcia; Bland Piatt; Wayne Wash, Independent, Ted 
Lakey. Deputy City Attorney. 
RECOMMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



City and County of San Francisco 



Primed at 4:14 PM on ti 7JM 



Finance and Labor Committee 



Meeting Minutes 



June 7, 2000 



000895 [Designating the Outreach Advertising Newspapers for Fiscal Year 2000-2001] 

Resolution designating the Bay View Inc., to be outreach newspaper for the African-American community; 
designating the Chinese Times to be outreach newspaper for the Chinese community; and designating the El 
Reportero to be outreach newspaper for the Hispanic community for the City and County of San Francisco; 
commencing July 1, 2000. (Purchaser) 

5/12/00, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee: Speakers: Harvey Rose, Budget Analyst; Michael Ward, Assistant Director, Purchasing 
Department: Supervisor Ammiano; Supervisor Yee; Ed Lee, Purchaser; Carmen Ruiz, Editor, El Latino; June 
Howard, CA Newspaper Service Bureau; Clementina Garcia; Bland Piatt; Wayne Wash, Independent; Ted 
Lakey, Deputy City Attorney 
RECOMMENDED by the following vote: 
Ayes: 3 - Yee, Bierman, Ammiano 



000768 [Budget Workshop - June 7, 2000[ 
Supervisor Yee 

Hearing to consider a budget workshop on the Fire Department, the Police Department, and the Sheriffs 

Department on Wednesday June 7th at 10:00 a.m. 

4/24/00, RECEIVED AND ASSIGNED to Finance and Labor Committee 

Heard in Committee. Speakers Supervisor Yee; Captain John Goldberg, Police Department (SFPD); 

Supervisor Ammiano; Debra Ward, Financial Officer, Fire Department; Deputy Chief Debacco, Fire 

Department (SFFD); Supervisor Bierman, Supervisor Ammiano; Michael Hennessey, Sheriff; Linda 

Hamilton; Mara Raider, Colition on Homelessness ; Ronald Rucker. 

FILED by the following vote: 

Ayes: 3 - Yee. Bierman, Ammiano 



ADJOURNMENT 

The meeting adjourned at 12:13 p.m. 



Cit}' and County of San Francisco 



Printed at 4:14 PM on & "" 00 



[Budget Analyst Report] 

Susan Horn 

Main Library-Govt. Doc. Section 



0.25^ 
l/co 



CITY AND COUNTY 




OF SAN FRANCISCO 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

1390 Market Street, Suite 1025, San Francisco, CA 94102 (415) 554-7642 
FAX (415) 252-0461 . 



June 2, 2000 
TO: Finance and Labor Committee 

FROM: Budget Analyst 

SUBJECT: June 7, 2000 Finance and Labor Committee Meeting 
Items 1 and 2 - Files 00-0892 and 00-0893 
Department: Purchasing Department 

Item: 



DOCUMENTS DEPT. 
JUN - 5 20C3 

SAN FRANCISCO 
PUBLIC LIBRARY 



Description: 



File 00-0892 : Resolution designating an as yet to be 
determined newspaper to be the official newspaper of the 
City for specified categories of advertising (Type 1) , 
commencing July 1, 2000. 

File 00-0893 : Resolution designating the San Francisco 
Independent to be the official newspaper of the City for 
specified categories of official advertising (Type 2) , 
commencing July 1, 2000. 

The City's official advertising is divided into two categories: 

Tvpe 1 - Advertisements for Two of More Consecutive Davs 
Official advertising which must be published on two or more 
consecutive days, and all official advertising which is 
required to be published in accordance with Section 2.103 of 
the Charter for special meetings of the Board of Supervisors 
and its standing or special committees. The Official 
Newspaper must publish at least 5 days a week for Type 1 
Advertising. 



Memo to Finance and Labor Committee 

June 7, 2000 Finance and Labor Committee Meeting 



Type 2 - Advertisements for Single or Non-consecutive Davs 
Official advertising, which must be published one time, other 
than one-time advertising related to special meetings for the 
Board of Supervisors and its standing and/or special 
committees, or more than one time but not more than three 
times per week for a specified number of weeks. The Official 
Newspaper must publish at least 3 days a week for Type 2 
Advertising. 

The City currently contracts with the San Francisco 
Examiner for Type 1 official advertising and with the San 
Francisco Independent for Type 2 official advertising. The 
contracts are due to expire June 30, 2000. 

Proposition J, which was approved by the San Francisco 
electorate in November of 1994. in part, changed the criteria 
by which the City selects a newspaper to publish the City's 
official advertising. The Purchasing Department advises 
that, under Proposition J, pursuant to Section 2.81 of the 
Administrative Code, several criteria are considered and 
used to evaluate bids, on the basis of a point system. Bidders 
are required to submit typeset samples and other 
documentation for evaluation purposes. The criteria used for 
evaluation of bids under Section 2.81 includes (1) the cost of 
advertising in each newspaper (the newspaper which bids the 
lowest price for advertising receives additional poi: 
the level of circulation of each newspaper (the newspaper 
with the largest circulation receives additional points). (3) 
the cost of the newspaper (any newspaper with a majority of 
circulation that is free of charge to the general public 
receives additional points), and (4) the ownership of the 
newspaper (newspapers which are owned by local, minority 
or women-owned firms receive additional point si. 

File 00-0892: According to the Purchasing Department, in 
;ponse to its Invitation for Bids, the Department did not 
receive any bids for Type 1 official advertising. The San 
Francisco Newspaper Agency, the agent for the San 
Francisco Chronicle and San Francisco Examiner has offered 
to extend the existing contract with the Examiner at an 
increased cost per line for official advertising. The 
Purchasing Department advises that the cost per line of 
typeset in FA" 2000-2001 would be S2.46, or $0.22 more than 
th. :harged in FY 1999-2000. representing a 9.8 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

June 7, 2000 Finance and Labor Committee Meeting 



percent increase. Attachment 2, provided by the Purchasing 
Department, contains bid data and point calculation 
information' for the San Francisco Examiner, and assuming 
the Examiner's contract is extended. For FY 2000-2001, the 
Purchasing Department estimates that the total costs for 
Type 1 official advertising in the San Francisco Examiner 
under a contract extension is estimated to be $23,860, a 9.8 
percent rate increase over the estimated cost for FY 1999- 
2000 of $21,730 based on the anticipated 9.8 percent increase 
in the cost per line of official advertising published. The 
Purchasing Department estimated the cost of the contract 
extension for FY 2000-2001 by averaging the actual monthly 
cost of advertising through April of 2000 and projecting it, 
including cost escalation, over the full year term of the 
contract. Because no bids were received, the Purchasing 
Department is not making a recommendation regarding the 
award of the City's Type 1 official advertising for FY 2000- 
2001. Instead, the Purchasing Department is presenting 
information to the Board of Supervisors about the San 
Francisco Examiner and San Francisco Chronicle 
newspapers. According to the Purchasing Department, the 
San Francisco Examiner and San Francisco Chronicle have 
historically been the only responsive bidders for Type 1 
advertising, and appear to be the only newspapers that meet 
the Administrative Code's requirements for Type 1 
advertising. 

Because no bids were received for Type 1 advertising, the 
Purchasing Department has presented five options to the 
City for FY 2000-2001 for the Board of Supervisors 
consideration as follows: (1) the Board of Supervisors could 
choose not to have an Official Newspaper for Type 1 
advertising, (2) the Board of Supervisors could direct 
Purchasing to rebid Type 1 using the same bid requirements, 
(3) the Board of Supervisors could direct Purchasing to rebid 
and relax some of the requirements of the Administrative 
Code, (4) the Board of Supervisors could designate the 
Examiner or Chronicle as the Official Newspaper for Type 1. 
or (5) the Board of Supervisors could designate the Examiner 
as the Official Newspaper for Type 1 advertising by 
extending the current contract with the Examiner (see 
Attachment 1, from the Purchasing Department, for a more 
detailed description of the options). 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

June 7, 2000 Finance and Labor Committee Meeting 

Regarding the five options, the Director of Purchasing stated 
that with respect to Option No. 5 which, if adopted by the 
Board of Supervisors, would designate the Examiner as the 
Official Newspaper for Type 1 advertising, "It appears this 
option is the most practical, timely, and economical way to 
meet the City's needs for Type 1, consecutive day 
advertising." Last year the Board of Supervisors selected 
Option 5, extending the San Francisco Examiner's contract 
for the period of FY 1999-2000. 

File 00-0893: According to the Purchasing Department, in 
response to its Invitation for Bids for FY 2000-2001, the San 
Francisco Independent submitted the sole bid for Type 2 
advertising. For FY 2000-2001, the Purchasing Department 
estimates that total costs for Type 2 official advertising in the 
San Francisco Independent would total $917,670, an 11.2 
percent rate increase over the estimated cost for FY 1999- 
2000 of $825,243. The Purchasing Department estimated the 
cost of the contract extension for FY 2000-2001 by averaging 
the actual monthly cost of advertising through April of 2000 
and projecting it. including cost escalation, over the full year 
term of the contract. The Purchasing Department is 
recommending that the San Francisco Independent be 
awarded the City's Type 2 official advertising for FY 2000- 
2001. The Purchasing Department advises that the cost per 
lino of typeset in FY 2000-2001 would be $4.78, or $0.48 more 
than the >4.30 charge in FY* 1999-2000. an 11.2 percent 
increase. Attachment 2, provided by the Purchasing 
Department contains the bid data and point calculation 
information for the San Francisco Independent . 

Comments: 1. Mr Michael Ward of the Purchasing Department states 

that the City Attorney has advised that the Board of 
Supervisors need not accept the Purchasing Department 's 
recommendations to award contracts to newspapers for 
Official Advertising and may designate any newspaper which 
is qualified under the Charter and the Administrative Code. 

2. The Purchasing Department estimated the cost of Type 1 
and Type 2 official advertising for FY* 2000-2001 by 
averaging the actual monthly cost of advertising through 
April of 2000 and projecting it, including cost escalation, over 
the full vear term of the contract. Total estimated costs for 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

June 7, 2000 Finance and Labor Committee Meeting 

Type 1 ($23,860) and Type 2 ($917,670) advertising of 
$941,530 for FY 2000-2001 are shown in Attachment 3. 

3. According to Mr. Ward, pursuant to Section 2.81-2(a) of 
the Administrative Code, 90 percent of the cost of official 
advertising will be paid to the Official Newspapers and 10 
percent will be withheld and placed into the Outreach 
Advertising Fund to pay for outreach advertising which are 
weekly advertisements placed in community-based 
periodicals, targeting African American, Chinese, Hispanic 
and Gay/Lesbian/Bisexual/Transgender communities, 
designated by the Board of Supervisors. In addition, any 
portion of the 10 percent set aside that is not expended in 
previous years is carried forward for future outreach 
advertising. 

Recommendations: 1. If the Board of Supervisors selects an official newspaper of 

the City for Type 1 official advertising, for FY 2000-2001, 
amend the proposed resolution (File 00-0892) to reflect that 
designation. The proposed resolution (File 00-0893) 
designates the San Francisco Independent as the official 
newspaper for Type 2 advertising for FY 2000-2001. 

2. Approval of the proposed resolutions is a policy matter for 
the Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Attachment I 



Tvpe 1 . Consecutive Dav Advertising Options 

Because no bids were received for Type 1 Advertising, Purchasing is unabic to make a 
recommendation pursuant to the guidelines in Section 2.81 of the Administrative Code. Therefore, 
the following options are presented for the Board's consideration. 

No Official Newspaper for Tvpe 1. The Board could choose not to have an Official Newspaper for 
Type 1 Advertising. Purchasing does not recommend this option because of the City's need for 
Type 1 advertising for scheduling special meetings of the Board, Committees, and certain 
consecutive day advertising such as bond issues and special elections. 

Rebid with the Same Bid Requirements. The Board could direct Purchasing to rebid Type 1 
Advertising using the same bid requirements. Purchasing has found that only the Examiner and the 
Chronicle meet the Administrative Code's requirements for circulanon of 50,000 per week, 
consecutive day publication, and printed in the City. Since both the Examiner and Chronicle did not 
bid this time, it is likely that they will not bid again. Therefore, Purchasing does not recommend this 
option because it is probable that no bids would be received. 

Rebid and Relax Administrative Code Requirements. The Board could direct Purchasing to rebid 
and relax some of the requirements contained in the Administrative Code, such as weekly circulation 
of 50,000 per week, consecutive day publication, or printed in City. However, because these 
requirements are in the Administrative Code, Sections 2.80 and 2.81 , and were passed by the voters, 
it would require voter approval to relax these requirements. Purchasing does not recommend this 
option because of the complexity and time requirements of obtaining voter approval. 

Designate the Examiner or Chronicle as Official Newspapers for Type 1 Advertising. Under 
this option, the Board would designate the Examiner or Chronicle as the Official Newspaper for 
Type 1 advertising, because they are the only known newspapers that meet the Administrative 
Code's requirements for circulation of 50,000 per week, consecunve day publication, and printed in 
the City. Although the newspapers did not submit bids, the San Francisco Newspaper Agency, agent 
for the Examiner, offered to extend the current contract at the rate of S2.46 per hne. If the City does 
not extend the contract, and the Board designated the Chronicle or Examiner as official newsDaDers 
for Type 1 Advertising, the Chronicle would not be subject to any of the City's terms and conditions 
required in the bidding process. Purchasing does not recommend this option. 

Designate the Examiner as Official Newspaper for Type 1 Advertising. The Board would 
designate the Examiner as the Official Newspaper for Type 1 Advertising by extending the cui 
contract. Under this option, the San Francisco Newspaper Agency would sign a contract extension, 
which would extend the contract for one year incorporating the terms of the existing agreement. It 
appears that this option is the most practical, timely, and economical way to meet the Chv's 
need for Type 1, Consecutive Day Advertising. 

One of the advantages offered of this option is that if the current Examiner contract is extended 
City will have a contract that includes the term;, and conditions required by the Citv. Ad 
the Examiner has historically been the Official Newspaper for Type 1 Advertising 

Last year, the Board selected Option No. 5 extending the San Francisco Examiner's 1 QQ " 
contract to cover the period of FY 1999-2000. 



Attachment II 



BID DATA AND POINT CALCULATION 



Type 1, "Consecutive Day 

No bids were received for Type 1 advertising. The calculation for the Examiner is based 
on actual expenditures for FY 1999-2000 (through the month of April) projected over the 
entire fiscal year, plus the increase in price of services for Fiscal Year 2000-01. 



Cost of Sample 
Home Circ, SF 
Price, if zero 
Locally owned 
Minority owned 
Woman owned 

Total 

Ranking 

Cost per line 

FY Estimated cost 



Examiner 


Data 


Pts. 


None 


15 


167,200 


10 


25c 





yes 


2 


no 





no 


_0 




27 




1 




$2.46 




$23,860 



Type 2. Nonconsecutive Day (Current year's bid data) 



Avail. 
Points 



Independent 
Data Pts. 



Cost of Sample 
Home Circ, SF 
Price, if zero 
Locally owned 
Minority owned 
Woman owned 



15 

10 

5 

2 

2 
2 



$755.24 
478,113 

yes 
yes 
yes 



15 

10 
5 
2 
2 
2 



Notes 



Total 

Ranking 

Cost per line 

FY Estimated cost 



36 



36 

1 
$4.78 
$917,670 



The San Francisco Independent does not qualify for a bid preference under the 
MBE/WBE/LBE Ordinance 



* Represents total home circulation on Tuesday and Saturday, the two days Purchasing is 
recommending for publishing of City advertisements. 



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Memo to Finance and Labor Committee 

June 7, 2000 Finance and Labor Committee Meeting 

Item 3 - File 00-0895 

Department: Purchasing Department 



Item: 



Description: 



Comments: 



Resolution designating certain newspapers for the City's 
outreach advertising, including the San Francisco Bav 
View Inc., to be the outreach newspaper of the City for the 
African-American community; designating the Chinese 
Times to be the outreach. newspaper of the City for the 
Chinese community; designating the El Reportero to be 
the outreach newspaper of the City for the Hispanic 
community. 

Proposition J, which was approved by the San Francisco 
electorate in November of 1994, provided, in part, for an 
Outreach Advertising Fund to be established for the 
purpose of the City placing "outreach advertising" or 
weekly notices of items pertaining to governmental 
operations in periodicals selected to reflect the diversity in 
race and sexual orientation of the population of the City. 
Outreach advertisements include, but are not limited to, 
information about issues that are being reviewed by the 
Board of Supervisors and directly affecting the public. 
Proposition J requires the City to withhold 10 percent of 
the amounts paid for official advertising and deposit the 
monies in the Outreach Advertising Revenue Fund. 

1. Pursuant to Proposition J and in accordance with 
Section 2.81-2(a) of the Administrative Code, the City is 
required to withhold 10 percent of the annual amounts 
paid for the City's Type 1 and Type 2 official advertising 
and to deposit these monies into the Outreach Advertising 
Fund. 

The City's official advertising is divided into two 
categories: 

Tvpe 1 - Advertisements for Two of More Consecutive 

Davs 

Official advertising which must be published on two or 

more consecutive days, and all official advertising which 

is required to be published in accordance with Section 

2.103 of the Charter for special meetings of the Board of 

Supervisors and its standing or special committees. The 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

June 7, 2000 Finance and Labor Committee Meeting 



Official Newspaper must publish at least 5 days a week 
for Type 1 Advertising. 

Tvpe 2 - Advertisements for Single or Non-consecutive 
Days 

Official advertising, which must be published one time, 
other than one-time advertising related to special 
meetings for the Board of Supervisors and its standing 
and/or special committees, or more than one time but not 
more than three times per week for a specified number of 
weeks. The Official Newspaper must publish at least 3 
days a week for Type 2 Advertising. 

Mr Michael Ward of the Purchasing Department 
estimates that the FY 2000-2001 cost for the City's Type 1 
($23,860) and Type 2 ($917,670) official advertising would 
total $941,530. Therefore, the estimated amount available 
for outreach advertising is $94,153, or 10 percent of the 
$941,530. 

2. Mr Ward notes that other community oriented 
newspapers submitted bids than those listed in the 
proposed resolution as shown in the attachment provided 
by the Purchasing Department. However, since the 
passage of Proposition J, approved by the voters in 
November of 1994, bid prices are only one of several 
factors evaluated and considered when determining the 
designated outreach newspaper With the passage of 
Proposition J, the Purchasing Department is required to 
recommend to the Board of Supervisors the newspaper 
with the highest total point score. As shown in the 
attachment, the S.F. Bay View, Chinese Times, and El 
Reportero had the highest point scores as determined by 
the Purchasing Department. 

Mr. Ward state- that the City Attorney has advised 
that the Board of Supervisors need not accept the 
Purchasing Department's recommendations to award 
contracts to the above-noted periodicals and may 
designate any periodical which is qualified under the 
Administrative Code. Additionally, pursuant to Sections 
2.80-1 (b) and 2.81-4 of the Administrative Code, the 
Board of Supervisors may specify additional outreach 
communities, and may authorize additional advertising 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

June 7, 2000 Finance and Labor Committee Meeting 



Recommendation: 



for communities not adequately served by tbe City's 
outreach periodicals. 

4. According to Mr. Luis Espinoza of the Purchasing 
Department, there is a balance of approximately $47,314 
in the Outreach Advertising Fund as of May 23, 2000. 

5. The Outreach Advertising Bid Evaluation and Bid 
Review, provided by the- Purchasing Department, are 
shown as an attachment to this report. 

Approval of the proposed resolution is a policy matter for 
the Board of Supervisors. 




farvey M. Rose 



Supervisor Yee 
Supervisor Bierman 
President Ammiano 
Clerk of the Board 
Controller 
Steve Kawa 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



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City and County of £an Francisco 

Meeting JYIinutes 

Finance and Labor Committee 

Members: Supervisors Leland Yee, Sue Merman, Tom Ammiano 
Clerk: Mary Red 



[All Committees] 

Government Document Section 

Main Library 



Thursday, June 08, 2000 



10:00 AM City Hall, Legislative Chamber - 2nd Floor 

Special Budget Workshop 



Members Present: Leland Y. Yee, Sue Bierman. 
Members Absent: Tom Ammiano. 



MEETING CONVENED 

The meeting convened at 10:15 a.m. 

000769 [Budget Workshop - June 8, 2000) 
Supervisor Yee 

Hearing to consider a budget workshop on the Department of Children, Youth and Their Families and Juvenile 
Probation Department on Thursday, June 8th at 10:00 a.m. 
4/24/00, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Deborah Alvarez-Rodriguez, Director, Department of Children, Youth and 
Their Families: Jesse Williams, Chief Probation Officer, Juvenile Probation Department: Dr. Norma Tecson, 
Executive Director, Filipino-American Council: Jim Richards, Executive Director, Columbia Park Boys and 
Girls Club: Joe Wilson, Coleman Advocates: Shirley Jones, Executive Director, California Association for 
Health, Education, Employment and Dignity (CAHEED); Darin Ow-Wing, Community Educational Services: 
Commissioner Damone Hale, Juvenile Probation Commission. 
FILED by the following vote: 

Ayes: 2 - Yee, Bierman 

Absent: 1 - Ammiano 



ADJOURNMENT 

The meeting adjourned at 11:48 a.m. 



DOCUMENTS DEPT 

JUN 1 9 2000 

SAN FRANCISCO 
PUBLIC LIBRARY 



City and County of San Francisco 



Printed at 5:15 PM on Vli/00 




City and County of £an Francisco 

Meeting Minutes 
finance and Labor Committee 

Members: Supervisors Leland Yee, Sue Bierman, Tom Ammiano 
Clerk: Mary Red 



[All Committees] 

Government Document Section 

Main Library 



Wednesday, June 14, 2000 



10:00 AM 
Regular Meeting 



City Hall, Room 263 



Members Present: Leland Y. Yee, Tom Ammiano. 



Members Absent: Sue Bierman. 



DOCUMENTS DEH) 

JUN t 9 2000 

SAN FRANCISCO 
PUBLIC LIBRARv 



Meeting Convened 

The meeting convened at 10:06 a.m. 



000977 [Interim Government Funding, Fiscal Year 2000-2001] 

Interim Annual Appropriation Ordinance appropriating all estimated receipts and all estimated expenditures 

for the City and County of San Francisco for fiscal year endmg June 30, 2001. (Mayor) 

6/1/00, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers/ Harvey Rose. Budget Analyst; Geoffrey Rothman. Director, Employee 

Relations Division. Department of Human Resources; Supervisor Yee; Matthew Hymel. Acting Assistant 

Controller. 

RECOMMENDED by the following vote: 

Ayes: 2 - Yee, Ammiano 

Absent: 1 - Bierman 



000978 [Interim Public Employment, Fiscal Year 2000-2001 1 

Interim Annual Salary Ordinance enumerating positions in the Annual Budget and Appropriation Ordinance 

for the Fiscal Year ending June 30, 2001, continuing, creating or establishing these positions; enumerating and 

including therein all positions created by Charter or State law for which compensations are paid from City and 

County funds and appropriated in the Annual Appropriation Ordinance; authorizing appointments or 

continuation of appointments thereto; specifying and Fixing the compensations and work schedules thereof; 

and authorizing appointments to temporary positions and fixing compensations therefor. (Human Resources 

Department) 

6/1/00, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Har\>ey Rose. Budget Analyst; Geoffrey Rothman. Director. Employee 

Relations Division. Department of Human Resources; Super\-isor Yee; Matthew Hymel, Acting Assistant 

Controller. Amend the Administrative Provisions to delete internal adjustments for Municipal Executives 

Association, Section 2.1. Same title. 

AMENDED. 

RECOMMENDED AS AMENDED by the following vote: 

Ayes: 2 - Yee, Ammiano 

Absent: 1 - Bierman 



City and County of San Francisco 



Printed at ':T PM on 6.14,00 



Finance and Labor Committee 



Meeting Minutes 



June 14. 2HIIII 



000992 (Redevelopment Agency Interim Budget. Fiscal Year 2000-2001 1 

Resolution approving an Interim Budget of the Redevelopment Agency of the City and County of Su 
Francisco for fiscal year 2000-2001. (Redevelopment Agency) 

(Fiscal impact.) 

5/24/00, RECEIVED AND ASSK (NED to I inarm ind Labor Committee 

Heard in Committee Speakers Harvey Rose. Budget Analyst; Geoffrey Rothman. Director. Employee 

Relations Division, Department of Human Resources, Supervisor Yee, Matthew Hymel, Acting Assistant 

Controller 

RECOMMENDED by the following vote: 

Ayes: 2 - Yee. Ammiano 

Absent: 1 - Bierman 



000988 (Amendment to MOl', Union of Physicians and Dentists lor Bargaining I nit 1 1 \ \| 

Ordinance implementing the provisions of a mediated agreement between the Union of American Physicians 
and Dentists and the City and County of San Francisco for Bargaining Inn 1 1AA to be effective July 1, 2000. 
(Human Resources Department) 

(I iscal impact.) 

5/24/00. RECETV1 D AND ASSIGN! Dtol naneeaad Labor < ommmce 

Heard in Committee. Speakers Han ey Rose. Budget Analyst. Geoffrey Rothman. Director. Empl 

Relations Division, Department of Human Resoun tl 

RECOMMENDED by the following \ote: 

Ayes: 2 - Yee, Ammiano 

Absent: 1 - Bierman 



000989 (Amendment to MOl . Union of Physicians and Dentists for Bargaining I nit 8CC | 

Ordinance implementing the provisions of a mediated agreement between the I'mon of American Physicians 
and Dentists and the City and County of San Francisco tor Bargaining I nit BOC to be effective July 1. 2000. 
(Human Resources Department) 

(Fiscal impact.) 

5 :•» iw. RECEIVED AND ASSIGNED to Finance and Labor Comminec 

Heard in Committee Speakers Harvey Rose, Budget Analyst. Geoffrey Rothman. Director, Employee 

Relations Division, Department of Human Resources 

RECOMMENDED by the following vote: 

Ayes: 2 - Yee, Ammiano 

Absent: 1 - Bierman 



City and County of San Francisco 



Printed at 7sT? PM on 6 li>W) 



Finance and Labor Committee 



Meeting Minutes 



June 14, 2000 



000990 [Amendment to MOU, Locals 250, 535 and 7901 

Ordinance implementing Amendment No. 3 to the 1997-2000 Memorandum of Understanding between the 
SEIU Locals 250, 535, 790, and the City and County of San Francisco by adding Section 19. N which provides 
for the pass-through of State of California funds to certain represented classes working at skilled nursing 
facilities. (Human Resources Department) 

(Fiscal impact.) 

5/24/00, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Alice Villagomez, Deputy Director, 

Department Human Resources (DHR). Amended to require DHR to provide specific details of premiums paid 

to specific classifications. New title. 

AMENDED. 

Ordinance implementing Amendment No. 3 to the 1997-2000 Memorandum of Understanding between the 

SEIU Locals 250, 535, 790, and the City and County of San Francisco by adding Section 19.N which provides 

for the pass-through of State of California funds to certain represented classes working at skilled nursing 

facilities; requesting specific allocation details. (Human Resources Department) 

(Fiscal impact.) 

RECOMMENDED AS AMENDED by the following vote: 

Ayes: 2 - Yee, Ammiano 
Absent: 1 - Bierman 



001015 |MOU, Local 790 Staff and Per Diem Nurses Amendment No. 2] 
Mayor 

Ordinance implementing Amendment No. 2 to the 1997-2000 Memorandum of Understanding between the 
SEIU Local 790 for Staff and Per Diem Nurses and the City and County of San Francisco by adding Sections 
19. K and 70. G which provide for the pass-through of State of California funds to certain represented classes 
working at skilled nursing facilities. 

(Fiscal impact.) 

5/30/00, RECEIVED AND ASSIGNED to Finance and Labor Committee 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Alice Villagomez, Deputy Director, 

Department Human Resources (DHR). Amended to require DHR to provide specific details of premiums paid 

to specific classifications. New title. 

AMENDED. 

Ordinance implementing Amendment No. 2 to the 1997-2000 Memorandum of Understanding between the 
SEIU Local 790 for Staff and Per Diem Nurses and the City and County of San Francisco by adding Sections 
19. K and 70. G which provide for the pass-through of State of California funds to certain represented classes 
working at skilled nursing facilities; requesting specific allocation details. 

(Fiscal impact.) 

RECOMMENDED AS AMENDED by the following vote: 

Ayes: 2 - Yee, Ammiano 

Absent: 1 - Bierman 



City and County of San Francisco 



Printed at 7:37PM on 6/14/00 



Finance and Labor Committee 



Meeting Winutet 



June 14, 21100 



000991 |MOU, Locals 250, 535 and 790| 

Ordinance adopting and implementing the Memorandum of l Understanding between the Sen ice Hmployees 
Union, AFL-CIO, Locals 250, 535 and 790, and the City and County of San Francisco to be effective for the 
period July 1, 2000 through June 30, 2003. (Human Resources Department) 

(Fiscal impact.) 

5/24/00, RECEIVED AM) ASSII fNED to Finance and Labor Committee 

Heard in Committee Speakers Harvey Rose, Budget Analyst; Geoffrey Rothman. Director. Employee 

Relations Division, Department at Human Resources, Michael Haberherger, Local 790, Supervisor Yee; 

Supervisor Ammiano; Ted Lakev. Deputy City Attorney, Alice Villagomez, Depun Director. ERD. 

RECOMMENDED by the following vote: 

Ayes: 2 - Yee, Ammiano 

Absent. 1 - Bierman 



001013 [MOU, Interns and Residents Association] 
Mayor 

Ordinance implementing the pn>\ isions of a Memorandum of I nderstanding between the San Francisco 
Interns and Residents Association and the City and County of San Francisco for the period July 1. 2000 
through June 30, 2003. 

(Fiscal impact.) 

5/30VOO. RECEIVED AND ASSIGNED to Finance and Labor Committee 

Heard in Committee Speakers Harvey Rose. Budget Anal . Rothman Director, Empt 

Relations Division. Department oj Human Resourt < I 

RECOMMENDED by the following vote: 

Ayes: 2 - Yee, Ammiano 

Absent: 1 - Bierman 



001014 |MOU, Local 856| 
Mayor 

Ordinance adopting and implementing the provisions of a Memorandum of Understanding between the 

Teamsters Local 856 and the City and County of San Francisco for Supervising Nurses to be effective for the 

period July 1, 2000 through June 30, 2003. 

5/30/00. RECEIVED AND ASSIGNED to Finance and Labor Committee 

6/13/00, SUBSTITUTED. From Department of Human Resources, elencal correction to the Memorandum of Understanding only, 

paragraph 59, page 10 

Heard in Committee Speakers Geoffrey Rothman, Director. ERD; Department of Human Resources; Harvey 
Rose. Budget Analyst 
RECOMMENDED by the following vote: 

Ayes: 2 - Yee, Ammiano 
Absent: 1 - Bierman 






City and County of San Francisco 



Printed at ':}' PSt on 6. UVO 



Finance and Labor Committee 



Meeting Minutes 



June 14, 2000 



001016 [MOU, Local 790, Staff and Per Diem Nurses] 
Mayor 

Ordinance adopting and implementing the terms of a Memorandum of Understanding between the Service 
Employees International Union, Local 790, AFL-CIO and the City and County of San Francisco for Staff 
Nurses and Per Diem Nurses to be effective July 1, 2000 through June 30, 2003. 

(Fiscal impact.) 

5/30/00, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Alice Villagomez, Deputy Director, ERD; 

Supervisor Yee. 

RECOMMENDED by the following vote: 

Ayes: 2 - Yee, Ammiano 

Absent: 1 - Bierman 



001058 [Library Facilities Bonds] 

Supervisors Brown, Yaki, Newsom, Bierman, Leno, Katz 

Resolution determining and declaring that the public interest and necessity demand municipal improvements 
consisting of the acquisition, rehabilitation, renovation, improvement, construction or reconstruction by the 
City and County of San Francisco of library facilities and properties other than the main library, and all other 
works, property and structures necessary or convenient for the foregoing purposes, that the estimated cost of 
$129,245,000 for said municipal improvements is and will be too great to be paid out of the ordinary annual 
income and revenue of said City and County and will require the incurring of a bonded indebtedness; finding 
the proposed project is in conformity with the priority policies of Planning Code Section 101.1(b) and with the 
General Plan consistency requirement of the Administrative Code Section 2A.53. 

(Fiscal impact.) 

6/5/00, RECEIVED AND ASSIGNED to Finance and Labor Committee. 

Heard in Committee. Speakers: Harvey Rose, Budget Analyst; Spennsor Brown; Susan Hildreth, Acting City- 
Librarian; Supervisor Ammiano; Gary Lloyd, Department of Public Works; Supen'isor Yee. 
AMENDED, AN AMENDMENT OF THE WHOLE BEARING NEW TITLE. 

Resolution determining and declaring that the public interest and necessity demand municipal improvements 
consisting of the acquisition, rehabilitation, renovation, improvement, construction or reconstruction by the 
City and County of San Francisco of branch libraries and other library facilities, other than the main library, 
and all other works, property and structures necessary or convenient for the foregoing purposes, that the 
estimated cost of $105,865,000 for said municipal improvements is and will be too great to be paid out of the 
ordinary annual income and revenue of said City and County and will require the incurring of a bonded 
indebtedness; finding the proposed project is in conformity with the priority policies of Planning Code Section 
101.1(b) and with the General Plan consistency requirement of the Administrative Code Section 2A.53. 

(Fiscal impact.) 

RECOMMENDED AS AMENDED by the following vote: 

Ayes: 2 - Yee, Ammiano 
Absent: 1 - Bierman 



ADJOURNMENT 

The meeting adjourned at 1 1:40 a.m. 



City and County of San Francisco 



Printed at 7:37 PM on 6/14/00 



.^ 



f/o* 




[Budget Analyst Report] 

Susan Horn 

Main Library-Govt. Doc. Section 



CITY AND COUNTY liW&^fflJj/ OF SAN FR ^ 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

1390 Market Street, Suite 1025, San Francisco, CA 94102 (415) 554-7642 
FAX (415) 252-0461 

June 8, 2000 D(DC UMENrS DEPT 
TO: , Finance and Labor Committee jy^ « , _ 

FROM: ^Budget Analyst S AN FRANCISCO 

SUBJECT: June 14, 2000 Finance and Labor Committee Meeting " BR ARY 

4 



Items 1, 2 and 3 - Files 00-1087, 00-1088 and 00-0992 

1. The proposed legislation would approve the Interim Annual Appropriation 
Ordinance (File 00-1087), the Interim Annual Salary Ordinance (File 00-1088) and 
a resolution approving an interim budget for the Redevelopment Agency for Fiscal 
Year 2000-2001 (File 00-0992). 

2. The annual budget process for the City and County requires that the Board of 
Supervisors approve an Interim Annual Appropriation Ordinance and an Interim 
Annual Salary Ordinance for Fiscal Year 2000-2001 on or before June 30, 2000. The 
purpose of these interim ordinances is to provide position and expenditure 
authorization for the various departments of the City and County during the time 
that the Finance and Labor Committee of the Board of Supervisors is reviewing the 
Mayor's recommended budget for Fiscal Year 2000-2001. The budget is scheduled to 
be adopted by the Board of Supervisors on July 19, 2000. 

3. The Interim Annual Appropriation Ordinance and Interim Annual Salary 
Ordinance are based on the Fiscal Year 2000-2001 proposed budget 
recommendations of the Mayor. Hence, these ordinances include authorization and 
funding for all programs and program revisions which are included in the Mayor's 
proposed 2000-2001 budget. Each program and program revision will be reviewed 
in detail during the budget hearings which have been scheduled by the Finance and 
Labor Committee from June 20 through June 29, 2000. 

4. The proposed resolution (Item 3, File 00-0992), approving an interim budget 
for the Redevelopment Agency, provides authority for the Redevelopment Agency to 
function under the State Community Redevelopment Law for the period from July 
1, 2000 until the Redevelopment Agency's budget for FY 2000-2001 is finally 
approved by the Board of Supervisors, as required by Section 33606 of the State 



Memo to Finance and Labor Committee 

June 14, 2000 Finance and Labor Committee Meeting 

law. Approval of the proposed resolution would not constitute final approval of new 
positions, program expenditures, or Tax Increment Bonds for FY 2000-2001. 

5. As a general policy, in previous years, the Board of Supervisors has not 
approved new positions and programs during the interim budget period without 
detailed review. This general policy has been implemented by instructing the 
Controller not to certify the availability of funds for new positions, new programs or 
program expansions during the interim budget period between July 1 and July 31. 
If an exception is approved by the Board of Supervisors, new positions can be filled 
effective July 1. Otherwise, new positions will generally not be filled until August 1 
at the earliest. 

6. The Administrative Provisions of the Interim Annual Appropriation 
Ordinance further state that no funds shall be allotted until August 1 for capital 
improvements and equipment. However, leased equipment is not subject to this 
provision. In certain cases, specific exceptions to these general policies have been 
approved by the Board of Supervisors. Exceptions have been based on such factors 
as new positions and programs that produce revenue or prevent major service 
deficiencies which would result from delays in filling new positions or starting new 
programs. Approval of some equipment purchases, for example, could result in cost 
savings. 

7. The Controller has prepared revisions to the Administrative Provisions of the 
Interim Annual Appropriation Ordinance (AAO). These proposed revisions are 
described below: 



SECTION 9. Interdepartmental Services: A new paragraph has been 
substituted stating that: The amount detailed in departmental budgets for 
services of other City departments cannot be transferred to other spending 
categories without prior agreement from both the requesting and 
performing departments. 

According to Mr. Matthew Hymel, Deputy Controller, this language has 
been included to prevent expenditures from being incurred by work order 
performing departments without reimbursement from requesting 
departments. 



SECTION 10.11 Changes in Health Services Eligibility: New 

language has been added stating that: Should the Board of Supervisors 
amend Administrative Code Section 16.700 to change the eligibility in the 
City's Health Service System, the Controller is authorized and directed to 
transfer from any legally available funds or the Salary and Fringe reserve 
for the amount necessary to provide health benefit coverage not already 
reflected in the departmental budgets. 

Board of Supervisors 
Budget Analyst 

9 



Memo to Finance and Labor Committee 

June 14, 2000 Finance and Labor Committee Meeting 

This language is added to permit adjustments to the Annual 
Appropriation Ordinance should a proposed amendment to the 
Administrative Code be adopted by the Board of Supervisors. 

• The following sections have been deleted: 

SECTION 11.11 Stadium Inc. Bonds: Hotel Tax revenues formerly 
transferred to the Recreation Park Department to retire bonded 
indebtedness for Candlestick Park should now be retained by the 
General Fund as such bonds have now been fully redeemed. 

SECTION 11.17 Capital Items: deletes obsolete provision concerning 
a capital reserve item included in the FY 1999-2000 Annual 
Appropriation Ordinances. 

SECTION 11.26 Property Transfer Tax Proceeds: deletes a 
provision for the use of excess Property Transfer Tax Proceeds that 
was included for the FY 1999-2000 budget. 

SECTION 12.7 Public Health Contractual Services: deletes 
provision added in FY 1998-99 prohibiting substitution of Public 
Health Contractual Services with civil service employees without prior 
Board of Supervisors approval. 

• SECTION 12.7 Department of Public Health Transfer Payments: 

Proposed language is added stating: To more accurately reflect the total 
net budget of the Department of Public Health, this ordinance shows net 
revenues received from certain state and federal health programs that 
require a transfer. Funds necessary to participate in such programs that 
require transfer payments are hereby appropriated. 

This provision simplifies the budget presentation of net expenditures for 
the Department of Public Health. 

• SECTION 12.8 Proposition E, Municipal Transportation Agency: 

Proposed language is added stating: Consistent with the provisions of 
Proposition E creating the Municipal Transportation Agency, the 
Controller is authorized to make such transfers and reclassification of 
accounts necessary to properly reflect the provision of central services to the 
Municipal Transportation Agency in the books and accounts of the City. 
No change can increase or decrease the overall level of the City's budget. 
This provision will allow technical adjustments to the Annual 
Appropriation Ordinance (AAO) consistent with the requirements of the 
Charter as amended by Proposition E approved by the voters in November 
of 1999. 



Board of Supervisors 
Budget Analyst 



Memo to Finance and Labor Committee 

June 14, 2000 Finance and Labor Committee Meeting 

• Section 12.9 Treasure Island Authority; Proposed language is added 
stating: Should the Treasure Island property be conveyed and deed 
transferred from the federal government, the Controller is hereby 
authorized to make budgetary adjustments necessary to ensure that there is 
no General Fund impact from this conveyance. 

This provision will allow technical adjustments to the AAO resulting from 
the transfer of Treasure Island to the City from the Federal government 
as long as such transfer results in no increase in General Fund spending. 

• SECTION 15. Departments. 

Proposed language is added concerning City departments as follows: 

(b) There shall be a Department of Child Support Services established 
pursuant to state law. The Mayor shall appoint and may remove at his 
or her pleasure a Director of Child Support Services. 
(Note: the Controller will be submitting an amendment to the Interim 
AAO to make this provision consistent with State Law). 

(h) There shall be a Department of Adult and Aging Services under the 
Mayor. The department shall include functions of the Commission on 
the Aging, Public Guardian and the Mental Health Conservator, and 
any other duties and responsibilities assigned by ordinance or by the 
Mayor pursuant to Charter Section 4.132. 

The Department and the Commission on the Aging ("the Commission") 
shall coordinate their operations to the greatest extent possible so as to 
improve the delivery of services, increase administrative efficiencies and 
eliminate duplication of efforts. To this end, the Department and the 
Commission may share facilities and operate joint programs. This 
coordination is not intended to diminish the authority and the 
discretion of the Commission on the Aging and the Commissions 
Director over matters under the jurisdiction of the Commission. 

The Director of the Commission on the Aging may also serve as the 
department head of the Department of Adult and Aging Services, but 
shall receive no extra compensation solely by virtue of the dual 
appointment. If a dual appointment is made, the authority of the 
Commission on the Aging to dictate policy to its Director shall not 
extend to matters under the jurisdiction of the Department of Adult and 
Aging Services. 

The new language for Section 15 of the Administrative Provisions of 
the AAO implements legislation is required by State law for the 
Department of Child Support Services. The creation of this department 
is also the subject of a proposed amendment to the Administrative 

Board of Supervisors 
Budget Analyst 



Memo to Finance and Labor Committee 

June 14, 2000 Finance and Labor Committee Meeting 

Code. The formation of the Department of Adult and Aging Services 
has been incorporated into the Mayor's recommended budget for FY 
2000-2001. 

• SECTION 24 Cost-of-Living Adjustment for Non-Profit Service 
Providers: Proposed new language is added as follows: Funds 
provided in the departmental budgets for a fiscal year 2000-2001 cost- 
of-living adjustment for non-profit service providers shall be dedicated 
to increasing wages and first priority given to those employees earning 
less than $9 per hour. 

This proposed language would implement the intent of the Mayor's FY 
2000-2001 Recommended Budget with respect to the use of cost-of- 
living adjustments for non-profit service providers. The Mayor's 
Recommended Budget includes total funding of $5,031,787 for such 
cost-of-living adjustments for Non-Profit Service Providers. 

8. The proposed Interim Annual Salary Ordinance (ASO) includes amended 
Administrative Provisions which adds the following new Section: 

SECTION 2. COMPENSATION PROVISIONS 

2. 1. Internal Adjustments for the Municipal Executives Association (MEA) 

The adoption of this ordinance includes approval of internal adjustments for 
certain classifications pursuant to the provisions of the Memorandum of 
Understanding between the Municipal Executives Association and the City and 
County. 

2.2 PUC Employees assigned to Hetch Hetchy. 

The Public Utilities Commission will pay a stipend of $131 per month to 
employees residing in designated zip code areas enrolled in the Health Services 
System with employee plus two or more dependents where HMOs are not 
available and such employees are limited to enrollment to City Plan I. 
(This provision is for Hetch Hetchy employees who live in areas such as 
Tuolumne County where HMO Health Care coverage is not available). 

Section 2.1, concerning Internal Adjustments for certain MEA classifications would 
approve such internal adjustments as recommended by the Department of Human 
Resources. Separate legislation concerning the proposed internal adjustments has 
not been submitted to the Board of Supervisors for separate approval. Approval of 
this proposed Interim Annual Salary Ordinance would approve the recommended 
internal adjustments. 

The recommended internal adjustments for 21 classifications representing 37 
budgeted positions are shown in the table below. 



board of supervisors 
Budget Analyst 



Memo to Finance and Labor Committee 

June 14, 2000 Finance and Labor Committee Meeting 

Proposed Internal Adjustments for 
Municipal Executives Association Classifications 



Classification 

1 105 Executive Director, Rent Arbitration Board 

1 107 Deputy Director, Rent Arbitration Board 

1 125 Division Manager, Registrar of Voters 

1 128 Registrar of Voters 

1131 Ass't Public Administrator, Public Guardian 

2455 Pharmacy Director, LHH 

2584 Chief Medical Examiner-Coroner 

2742 General Services Supervisor 

2969 Social Services Program Manager 

5189 Manager, Utilities Engineering Bureau 

8336 Manager, Finance and Administration, JP 

9364 General Sup't of Harbor Maintenance 

9378 Development Project Coordinator. Port 
1 108 Executive Director, Health Service System 
1278 Division Manager Personnel 
1 172 General Manager, PUC 
8166 Worker's Compensation Supervisor II 
1565 Assistant Director, Art Commission * 
2452 Director of Pharmaceutical Services * 
2459 Forensic Laboratory Manager * 

9379 Chief Harbor Engineer 

37 
* Persons occupying these positions are already 
salary rates through temporary exchanges with 



Budgeted Current Salary 


Proposed Salary 


Percentage 


Positions at Top Step 


at Top Step 
S 105,144 


Increase 


1 S 93,4.9 


12.5% 


1 76,845 


80,080 


4.2% 


4 70,347 


80,080 


13.8% 


1 95.709 


105.144 


9.9% 


1 71.709 


79.872 


1 1 .4% 


1 84,731 


99,476 


17.4% 


1 157,986 


164.632 




1 42.916 


43,940 




9 :S5 


86,138 


2.2% 


1 1 28.459 


128.518 


0.05% 


1 78.312 


90.220 


15.2% 


1 87,665 


92.716 


5.8% 


4 69.35 1 


81,432 


• 


1 96.652 


110.188 


14.0% 


3 100,896 


110.188 




1 151.384 


188,188 


24 3% 


1 82,661 


90.818 


9.9% 


1 61,963 


77.922 


B% 


1 "31 


99.476 




1 63.797 


m 


22.1% 


I 110.197 


120,042 


8.9% 



being paid at the recommended higher 
Special Assistant classifications. 



As shown in the table above, the proposed internal adjustments result in 
salary increases ranging from .05 percent (for the 5189 Manager, Utilities 
Engineering Bureau) to 25.8 percent (for the 1565 Assistant Director. Art 
Commission). The dollar value of the proposed salary increases (calculated at the 
top step) ranges from $59 annually (for the 5189 Manager, Utilities Engineering 
Bureau) to $36,804 annually (for the 1172 General Manager. Public Utilities 
Commission). 

The Budget Analyst estimates that the total annual cost of the proposed 
internal adjustments for the 37 budgeted positions, calculated at the top step and 
including variable fringe benefits, is approximately $293,750. 

According to Ms. Janet Bosnich, Compensation Manager for the Department 
of Human Resources (DHR), the internal adjustments shown in the table above 
were reviewed by DHR and recommended in accordance with procedures specified 
in the MOU between the City and the Municipal Executives Association (ME 
Such procedures require evaluation of requests for review by DHR and 
recommendation of internal adjustments to the Mayor for approval prior to 



Board of Supervisors 
Budget Analyst 



Memo to Finance and Labor Committee 

June 14, 2000 Finance and Labor Committee Meeting 

inclusion in the proposed Annual Salary Ordinance submitted to the Board of 
Supervisors for approval. Criteria for internal adjustments include demonstrated 
recruitment or retention problems and salary relationships with subordinate 
classifications that are members of different bargaining groups. 

For example, the 24.3 percent increase for the 1172 General Manager - 
Public Utilities Commission was recommended after a survey by DHR found that 
prevailing salaries were higher for similar positions in other jurisdictions, according 
to Ms. Bosnich. The recommended internal adjustments would make the 1172 
General Manager classification, at an annual top step salary of $188,188, equal to 
the three highest paid positions in the City, the Director of Public Health, the 
Director of the Airport and the Controller. 

9. In past years, the Mayor's recommended Interim Annual Appropriation 
Ordinance and the Interim Annual Salary Ordinance have, in general, been 
routinely approved by the Board of Supervisors, with the exception of new positions 
and new programs, capital improvements and equipment, as noted above. 

10. At the direction of the Finance and Labor Committee and the full Board of 
Supervisors, the Budget Analyst has historically been instructed to analyze the 
Mayor's recommended budget in detail and make recommendations for reducing the 
Mayor's recommended budget only if such recommendations do not result in service 
level reductions. Budget reductions recommended by the Budget Analyst and 
approved by the Board of Supervisors, have often been used by the Board of 
Supervisors as a source of funds to: (a) restore items deleted in the Mayor's . 
recommended budget; (b) include new items in the budget based on the priorities of 
the Board of Supervisors; and/or (c) increase the General Fund Reserve. In 
accordance with the Charter, the reallocation of any savings realized from budget 
reductions made by the Board of Supervisors can now be made by the Board of 
Supervisors without appropriation approval by the Mayor, in accordance with the 
priorities of the Board of Supervisors. However, such reallocations would be subject 
to Mayoral veto. 

11. In accordance with the Fiscal Year 2000-2001 Budget Calendar, the Interim 
Annual Appropriation Ordinance and the Interim Annual Salary Ordinance are 
scheduled to be passed on first reading at the June 19, 2000 meeting of the Board of 
Supervisors. Final passage of these ordinances is scheduled for June 26, 2000. 

12. The Budget Analyst has previously been advised by Mr. Burke Delventhal of 
the City Attorney's Office that the Board of Supervisors is required to approve the 
Mayor's recommended Interim Annual Appropriation Ordinance and Interim 
Annual Salary Ordinance (and therefore the Interim Budget), subject to any 
additional reductions which the Board may choose to make, by no later than June 
30th of each year. Mr. Delventhal has further advised the Budget Analyst that if 
these ordinances are not approved by the Board of Supervisors by June 30, the 

Board of Supervisors 
Budget Analyst 



Memo to Finance and Labor Committee 

June 14, 2000 Finance and Labor Committee Meeting 

Controller will no longer have authority to issue payroll warrants to City and 
County employees or to issue other warrants to pay for any other City and County 
services. 

Mr. Harrington has previously advised the Budget Analyst that he concurs 
with the opinion of Mr. Delventhal. The Controller would cease to issue any further 
City and County warrants unless the Board of Supervisors approves an Interim 
Annual Appropriation Ordinance and Interim Annual Salary Ordinance (the 
Interim Budget) by June 30. 

13. Typically, exceptions to the Interim Annual Appropriation Ordinance and the 
Interim Annual Salary Ordinance are recommended by the Mayor in order to 
authorize new positions, equipment or capital projects during the interim budget 
period. However, the Mayor's Office is recommending no exceptions to the FY 2000- 
2001 Interim Annual Appropriation Ordinance and the Interim Annual Salarj 
Ordinance. 

14. Normally the Budget Analyst would recommend approval of the Interim 
Annual Appropriation Ordinance and the Interim Annual Salary Ordinance. 
However, because the proposed Interim Annual Salary Ordinance includes new 
internal adjustments for 21 MEA classifications covering 37 employees, the Budget 
Analyst considers approval of the proposed ordinances a policy matter for the Board 
of Supervisors. 

Recommendation 

1. Approve Item 3, File 00-0992, the resolution approving an interim budget for 
the Redevelopment Agency for Fiscal Year 2000-2001 (File 00-0992). 

2. Approval of Item 1, File 00-1087 and Item 2, File 00-1088, the Interim 
Annual Appropriation Ordinance and the Interim Annual Salary Ordinance, are 
policy matters for the Board of Supervisors. 



Board of Supervisors 
Budget Analyst 



Memo to Finance and Labor Committee 

June 14, 2000 Finance and Labor Committee Meeting 

Items 4 and 5 - Files 00-0988 and 00-0989 

Department: Department of Human Resources (DHR) 

Item: File 00-0988 Ordinance implementing the provisions of a 

Mediated Agreement between the Union of American 
Physicians and Dentists and the City and County of San 
Francisco for Bargaining Unit 11AA to be effective July 1, 
2000. 

File 00-0989 Ordinance implementing the provisions of a 
Mediated Agreement between the Union of American 
Physicians and Dentists and the City and County of San 
Francisco for Bargaining Unit 8CC to be effective July 1, 
2000. 

Description: Approval of the proposed ordinances would authorize the 

City to enter into a Mediated Agreement with the Union of 
American Physicians and Dentists, Bargaining Units 11AA 
and 8CC, which would be effective for a one-year period from 
July 1, 2000 through June 30, 2001. The proposed agreement 
would cover 7 classifications, comprising 150 employees, as 
follows: 

2210 Dentist 

2220 Physician 

2230 Physician Specialist 

2231 Senior Physician Specialist 
2292 Shelter Veterinarian 
2582 Forensic Pathologist 

2232 Supervising Physician Specialist 

Currently, the City has a Collective Bargaining Agreement 
(CBA) with the Union for FY 1997-1998 through FY 2000- 
2001. The existing CBA provides that an employee who 
participates in a medical quality incentive program 1 may 
receive a one-time incentive bonus equal to up to 3 percent of 
the prior fiscal year's base salary. Pursuant to a reopener 
provision in the CBA, the City commenced bargaining with 
the Union in October of 1999 as to whether or not any of the 
3 percent potential bonus for which employees would be 



1 The medical quality incentive program is a joint labor-management program to create an incentive 
program that compensates covered employees for providing high quality care. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

June 14, 2000 Finance and Labor Committee Meeting 

eligible on July 1, 2000, should instead be made in the form 
of an adjustment to base wages during FY 2000-2001. In 
contrast to the one time bonus, the adjustment to salary 
would have ongoing fiscal impact. The City and Union were 
unable to reach agreement and participated in arbitration in 
April of 2000. The parties entered into a Mediated 
Agreement on May 9, 2000. 

Comments: 1. According to Ms. Alice Villagomez of HRD, all covered 

employees are eligible for the full 3 percent bonus. Under 
the Mediated Agreement, the City would reduce the bonus by 
1.5 percent, resulting in a 1.5 percent bonus, to be paid 
within 60 days of July 1, 2000. Additionally, the City would 
increase the scheduled increase in base wages by 1.5 percent, 
resulting in an increase in base wages from the original 
scheduled increase of 2 percent for all employees to 3.5 
percent, effective July 1. 2000. The Budget Analyst notes 
that the City would incur permanent ongoing increased costs 
as a result of allocating 1.5 percent to base wages rather than 
to a one-time bonus. 

2. According to Mis Peg Stevenson of the Controller's Office, 
and as shown in the Attachment, the Controller's Office 
estimates that the proposed MOD will cost the City an 
additional $153,653 in FY 2000-01. The Budget Analyst 
concurs with the Controller's Office. Ms. Stevenson advises 
that the source of funds to pay for the subject increases 
would be the General Fund Salary and Benefits Reserve 
Fund, included in the proposed FY 2000-01 budget for 
$34,659,656 as well as other Special Fund revenue sources. 

5. The Budget Analyst advises that the total estimated cost 
of all of the MOUs included on this Finance and Labor 
Committee calendar is $36,493,253 for FY 2000-01. As noted 
above, the Salary and Benefit Reserve Fund, included in the 
proposed FY" 2000-01 budget currently totals $34,659,656. 
Ms. Stevenson advises that the General Fund Salary and 
Benefit Reserve Fund is intended to pay for only the City's 
General Fund salary, fringe benefit and related MOU costs, 
with the Special Fund Departments (e.g., Airport, Port, Rent 
Board. War Memorial, etc.) separately responsible for paying 
for their increased salary and fringe benefit costs. According 
to Ms. Stevenson, there will be sufficient funds to pay for all 
of the expenses related to the increased costs of these MOUs 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

June 14, 2000 Finance and Labor Committee Meeting 

from the FY 2000-2001 General Fund Salary and Benefit 
Reserve Fund and other Special Fund revenues included in 
the City's FY 2000-01 annual budget. 

Recommendation: Approval of the proposed ordinances is a policy matter for the 
Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Jun-08-00 02:35pm Froa-CCSF CONTROLLER OFFICE 



CITY AND COUNTY OF SAN FRANCISCO 



+415-554-7466 




Attachment 
Page 1 of 2 

OFFICE OF THE CONTROL! 

Edward Harm 
Co no 

Matthew H. H 
Chief \ v.is tjni Conu 



June 8, zOOO 

Ms. Gloria L. Y< ning, Clerk of the Board 

Board of Supervisors 

1 Dr. Carlton B. Goodlett Place 

San Francisco, C. A 94 1 02 

RE: Mediate. 1 agreement between the Uruon of American Physicians and Dentists and the Dry and 
County <f San Francisco. File No. 00-0988 and File No. 00-0989 

Dear Ms. Younj;, 

In accordance v,ith Ordinance 92-94, I am submitting a cost analysis of a mediated agreement between 
the Union of Arierican Physicians and Denusts and the City and County of San Francisco. The agreement 
covers the peric 1 July 1, 2000 through June 30, 2001, and affects approximately 173 employees with a 
salary base of approximately $19.4 million. 

Based on our analysis, die agreement will result in estimated incremental costs of approximately 
$154,000 in FY 2000-2001, representing a cost increase above the base salary amount of approximately 
0.8% in FY 2OCO-20O1. Please see Attachment A for specific cost estimates. 

If you have any additional questions or concerns please contact me at 554-7500 or Peg Stevenson of my 
staff at 554-7522. 



Sincerely, 




Edward M. Haiiington 
Controller 




cc: Alice ViLLagomez, ERD 

Harvey Hose, Budget Analyst 



415-SSO-7S00 



City Hall • 1 Dr. C«rlum B. Goodktt PUcc • JL»ra 316 • S«n Frwnciico CA 94102-»*'M 



Jun-08-00 Q2:35pn Frorn-CCSF CONTROLLER OFFICE 



Attachment A 

Union of Physicians and Dentists 
Estimated Costs .: 000-2001 
Controller's Off ic :. 



Annual Incremental Coats/fSavlnqs) 

Wage Increase 

Increase COLA from 2% to 3.5% July 1 , 2000 

Medical Quality Incentive Program 

Reduce Bonus fr<:m 3% to 1.5% 

Wage-Related Fringe Increases 



Total Estimated Incremental Costs 
Annual Amount Above 2000-2001 Level 
Incremental Cost % of Salary Base 



+415-554-7466 



Attachment 
Pa?e Z of 2 



FY 200Q-2O01 

$290,519 

(157.279) 
20,412 



153,653 



§153,653 
0.79% 



Memo to Finance and Labor Committee 

June 14, 2000 Finance and Labor Committee Meeting 

Items 6 and 7 - Files 00-0990 and 00-1015 



Department: 
Items: 



Department of Human Resources (DHR) 

File 00-0990: Ordinance implementing Amendment 
No. 3 to the 1997-2000 Memorandum of 
Understanding between the SEIU Locals 250, 535 
and 790 and the City and County of San Francisco 
by adding Section 19.N which provides for the pass- 
through of State of California Funds to certain 
represented classes working at skilled nursing 
facilities. 



Description: 



File 00-1015: Ordinance implementing Amendment 
No. 2 to the 1997-2000 Memorandum of 
Understanding between the SEIU Local 790 for 
Staff and Per Diem Nurses and the City and 
County of San Francisco by adding Sections 19. K 
and 70. G which provide for the pass-through of 
State of California Funds to certain represented 
classes working at skilled nursing facilities. 

There is an existing Memorandum of 
Understanding (MOU) between the City and SEIU 
Locals 250, 535 and 790 and another existing 
MOU between the City and Local 790 for Staff 
Nurses and Per Diem Nurses, both of which 
became effective July 1, 1997 and will terminate on 
June 30, 2000, a three-year period. The proposed 
ordinances would amend these two existing MOUs, 
to be effective retroactively to July 1, 1999. Under 
the proposed amendments, new sections would be 
added to these existing MOUs, to state that 
pursuant to the provisions of State Welfare and 
Institutions Code Section 14110.6, since the State 
of California provides additional pass-through 
funds to the City of San Francisco for compensating 
health care employees who are assigned to skilled 
nursing facilities, an additional premium will be 
paid to such health care providers. 

In accordance with the proposed amendments, the 
total aggregate cost of such premiums and related 
expenses cannot exceed the amount of eligible State 
pass-through funding for such compensation and 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

June 14, 2000 Finance and Labor Committee Meeting 

related costs, or $1.5 million for Fiscal Year 1999- 
2000 for the eligible SEIU Citywide classes and the 
SEIU staff and per diem nurses. This additional 
premium would be reimbursed to the qualifying 
health care employees assigned to skilled nursing 
facilities for the pay period closest to, but not 
earlier than August 1, 1999 through June 30, 2000. 
The exact amount of the premium, method of 
payment and eligibility for the premium would be 
determined by representatives from the 
Department of Human Resources (DHR), the 
Department of Public Health (DPH) and SEIU 
within 60 days of the approval of this amendment 
by the Board of Supervisors. 

Comments: 1. Ms. Alice Villagomez of the Department of 

Human Resources advises that under the proposed 
ordinances, health care employees assigned to 
skilled nursing facilities means only specific 
represented City employees who are assigned to 
work at Laguna Honda Hospital and San Francisco 
General Hospital. As shown in the Attachment 
provided by Ms Villagomez, the proposed 
ordinances would affect five eligible classifications 
signed to work at Laguna Honda Hospital and 
San Francisco General Hospital, and would affect a 
total of 1,022 budgeted positions. 

As noted above, the total estimated cost of the 
proposed ordinances is $1.5 million for FY 1999- 
2000. All of the proposed $1.5 million of funds 
would be State of California Skilled Nursing 
Facility Pass Through Funds allocated to San 
Francisco pursuant to the provisions of State 
Welfare and Institutions Code Section 14110.6. 

3. The proposed amendments, related to the Skilled 
Nursing Facility Pass Through Funds, in the 
existing MOUs, would also be included in the new 
MOUs with these two bargaining units effective 
July 1. 2000 through June 30, 2003, as discussed in 
Items 8 and 11, Files 00-0991 and 00-1016 of this 
report. Under these proposed MOUs for Fiscal 
Years 2000-01 through 2002-03, the costs are not 
included in the MOU for future fiscal years. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 






Memo to Finance and Labor Committee 

June 14, 2000 Finance and Labor Committee Meeting 



although, according to Ms, Villagomez, the intent is 
that all of the costs would be funded 100 percent by 
the State of California Skilled Nursing Facility 
Pass-through Funds. As of the writing of this 
report, the Controller had not yet estimated the 
costs of the proposed ordinance for FY 1999-2000 or 
for future years. Ms. Peg Stevenson of the 
Controller's Office advises that the Controller's 
Office plans to issue a report estimating the costs of 
the proposed ordinance prior to the June 14, 2000 
Finance and Labor Committee Meeting. 

4. As noted above, the exact amount of the 
premiums to be paid, the method of payment and 
the eligibility for the premiums will be determined 
by DHR, DPH and SEIU within 60 days of the 
approval of this amendment by the Board of 
Supervisors. Therefore, the Budget Analyst notes 
that approval of these ordinances at this time 
would preclude the Board of Supervisors from 
having the specific cost details related to the total 
amount of additional compensation and the 
percentage increases to be paid to specific 
classifications. Ms. Villagomez reports that due to 
the limited amount of time available for 
determining that the City needed to comply with 
this State requirement for pass-through funds, 
which needs to be approved by July 1, 2000, DHR 
did not have sufficient time to determine the 
specific allocation of the State funds for premiums 
to be paid to which eligible classifications and is 
unable to develop such documentation for the 
Board of Supervisors on a before-the-fact basis. 
However, Ms. Villagomez advises that once the 
allocation of the premiums are determined, DHR 
will report the specific details to the Board of 
Supervisors. 

5. According to Ms. Villagomez, if these proposed 
amendments are not approved, the City would be 
required to pay back to the State the estimated 
$1.5 million that the City received in FY 1999- 
2000, plus an additional ten percent penalty of 
$150,000, or a total of $1,650,000. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

June 14, 2000 Finance and Labor Committee Meeting 

Recommendations: Amend the proposed ordinances to require DHR to 
provide the specific details of the allocation of the 
premiums to be paid to which specific 
classifications, as soon as such information is 
available. Approval of the proposed ordinances, as 
amended, is a policy matter for the Board of 
Supervisors. 






BOARD OF SUPERVISORS 
BUDGET ANALYST 



JUN 7'00 15:38 FR 



Affected 



Classification 



415 557 4919 TO BUDGET ANALY8T P . 02/02 

Attachment 



Skilled Nursing Facility "Pass Through" 
Classifications and Number of Positions 



Number of Positions 



SFGH Unit 4A Skilled Laguna Honda Hospital 
! Nursing Facility 



2302 - Nursing Assistant 



2312 - Licensed Vocation Nurse 



2320 - Registered Nurse 



2328 - Nurse Practitioner 
P-103 - Per Diem Nurse 



10 



553 



72 



19 



244 



10 



Total 



*P-103's may either be 
Laguna Honda Hospita 



46 



107* 



976 



assigned to Adult Day Health or to the Skilled Nursing Facility at 



L.\SHARE\ERD\8ARG2000\Nur5es\Skiiied Nurswig Facility Classifications & Posoons.tloc 



Memo to Finance and Labor Committee 

June 14, 2000 Finance and Labor Committee Meeting 

Item 8 - File 00-0991 

Department: Department of Human Resources (DHR) 

Item: Ordinance adopting and implementing the Memorandum 

of Understanding (MOU) between the Service Employees 
International Union (SEIU), AFL-CIO, Locals 250, 535 
and 790 and the City and County of San Francisco, to be 
effective for the period July 1, 2000 through June 30, 
2003. 

Description: There is an existing Memorandum of Understanding 

(MOU) between the City and SEIU Locals 250, 535 and 
790, which became effective July 1, 1997 and will 
terminate on June 30, 2000, a three-year period. The 
proposed ordinance would adopt and implement a new 
MOU between the City and SEIU Locals 250, 535 and 
790. The proposed MOU is for the three-year period from 
July 1, 2000 through June 30, 2003. Local 250 covers 47 
classifications, Local 535 covers 25 classifications and 
Local 790 covers 359 classifications. Overall, this MOU 
covers a total of 11,082 employees. The major provisions 
of this MOU are summarized below. 

Wage Increases 

The proposed MOU would provide wage increases, 
totaling 14 percent over the three-year period of the 
MOU, to all covered employees based on the following 
schedule: 



Date 


Percent Wage Increase 


July 1, 2000 


3.0% 


January 6, 2001 


2.5% 


July 1, 2001 


2.0% 


January 5, 2002 


3.0% 


July 1, 2002 


3.5% 



In addition, effective July 1, 2000, 2442-Diagnostic 
Medical Sonographers wage rates will be increased by 
another ten percent. The Department of Human 
Resources (DHR) advises that this increase will affect 
three budgeted positions. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

June 14, 2000 Finance and Labor Committee Meeting 

Health Benefits 



Currently, the City contributes $225 per month per 
employee for dependent coverage. Under the proposed 
MOU, if dependent care exceeds $225 per month, the City 
would have to adjust its payment to up to 75 percent of 
the cost of Kaiser's dependent health care premium for 
the employee plus two or more dependents. DHR reports 
that for FY 2000-01, the cost for such dependent care is 
estimated to be $261 per employee. 

Under the proposed MOU, the City will propose changes 
to the Health Service eligibility criteria to permit 
enrollment of provisional employees, who are hired on a 
provisional basis, for a period of up to three years, 
because there is no Civil Service list from which to hire a 
permanent employee. In addition, the City will meet and 
confer with SEIl" and other affected unions if a Charter 
Amendment is proposed to allow the City to provide 
CalPERS health insurance coverage. 

Floating Holidays 

Currently, full-time employees receive 24 hours (3 work 
days) off for floating holidays. Effective July 1, 2002, full- 
time employees would receive 32 hours (4 work days), or 
one additional day off for floating holida- 

Regular Holidays 

The existing MOU requires employees to use their holiday 
days off within the fiscal year. The proposed MOU would 
permit employees to carryover unused holidays to the 
next fiscal year. 

Overtime 

Currently, only non-Z employees (Z employees are 
licensed professional employees who are exempt from the 
Federal Fair Labor Standards Act) receive overtime pay 
at time and one-half, unless compensatory time is 
requested. The proposed MOU would extend such 
overtime pay benefits to 2450 Pharmacists, unless the 
individual employee requests compensatory time m 
writing. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

June 14, 2000 Finance and Labor Committee Meeting 

Night Duty 



Currently, qualifying employees are paid an additional 
eight percent above their base wage for each hour worked 
from 5pm to 7am. The proposed MOU would add eight 
additional classifications and delete two classifications of 
Department of Public Health (DPH) workers eligible to 
receive evening and night shift differentials of this 
additional eight percent. DHR estimates that this 
adjustment will result in approximately 3,700 budgeted 
positions eligible to receive Night Duty payments. 

The proposed MOU would also establish a new night shift 
differential of ten percent, or an increase of two percent, 
for all qualifying employees for each hour worked between 
midnight and 7am, provided that at least five hours are 
worked during that period. 

Bilingual Pav 

The proposed MOU would increase full-time bilingual pay 
premiums from $50 to $60 per pay period, a $10 or 20 
percent increase, and increase part-time bilingual pay 
premiums from $35 to $40 per pay period, a $5 or 14 
percent increase. DHR estimates that approximately 410 
budgeted positions would be eligible for these full-time 
bilingual pay premiums and 491 budgeted positions 
would be eligible for these part-time bilingual pay 
premiums. 

Standby Pav 

Currently, employees required to be available on call for 
immediate emergency service are paid 25 percent of their 
regular straight time pay for their standby service and 
are paid 10 percent of their regular straight time pay 
when provided an electronic paging device for such 
standby service. The proposed MOU would provide that 
Trauma Response Members (Classifications 2494, 2495 
and 2310) be paid 50 percent of their regular straight 
time pay for their standby service and on holidays that 
such employees be paid 75 percent of their regular pay. 
DHR advises that this provision would affect 12 budgeted 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

June 14, 2000 Finance and Labor Committee Meeting 



positions and is the same rate of Standby Pay earned by 
Nurses. 

Holdover Pav 

Currently, there is no provision for Holdover Pay. The 
proposed MOU would add a new provision that full-time 
employees held over to work after having worked a 
regularly scheduled shift would be paid one and one-half 
times their regular rate of pay for the holdover period. 

Lead Person Premium 

Currently, only six specific classifications are entitled to 
receive lead person premiums of an additional $5 per day. 
The proposed MOU would extend this $5 per day 
premium benefit to all classifications when at least two 
employees are working together and one acts as the lead. 
DHR reports that the number of employees affected by 
this provision will fluctuate. 

Training Premium 

The proposed MOU would increase the additional 
training premiums for 8214 Parking Control Officers from 
the current $1.40 per hour to $2.00 per hour, an increase 
of $.60 or 43 percent. DHR advises that this premium 
would affect one or two budgeted positions. 

Pav Equity 

The current MOU provided $2 million for Pay Equity 
increases in FY 1997-98 and $1.5 million for Pay Equity 
increases in FY" 1998-99. The proposed MOU would 
provide that the City set aside $1.1 million for Pay 
Equity, of which $200,000 would be used to fund a Pay 
Equity study, to be completed by July 1, 2001. Under the 
proposed MOU, implementation of such Pay Equity 
adjustments would begin effective July 1, 2002. 

Appointments Above the Entrance Rate 

Currently, only permanent or exempt employees can be 
hired above Step 1, if five specific conditions apply. The 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

June 14, 2000 Finance and Labor Committee Meeting 

proposed MOU would enable any employee to be hired 
above Step 1, if any of the five conditions apply. 

Compensation Study 

The City agrees to complete a compensation study of 2494 
Staff Radiologic Technologist and 2495 Senior Radiologic 
Technologists by December 31, 2000, and to meet and 
confer with SEIU in order to implement changes in 
compensation by July 1, 2001. Ms. Alice Villagomez of 
DHR reports that this compensation study will be 
performed by the Department of Public Health (DPH) 
staff and the costs for this study would be absorbed within 
the DPH's existing budget. 

Employee Assistance Program 

The proposed MOU would extend the funding of the 
Employee Assistance Program at $125,000 annually, 
administered by the Department of Public Health. 

Maximum Accrual of Compensatory Time 

Currently, Limited Tenure (L) designated employees can 
accumulate more than 240 hours of compensatory time, 
calculated at time and one-half The proposed MOU would 
provide that such Limited Tenure designated employees 
can accrue no more than 480 hours of compensatory time 
calculated at time and one-half 

Skilled Nursing Facility Pass Through 

The proposed MOU includes provisions for paying 
additional premiums to employees assigned to a Skilled 
Nursing Facility (i.e., Laguna Honda Hospital), based on 
the pass-through funds received by the City from the 
State of California. See Items 6 and 7, Files 00-0990 and 
00-1015 of this report for additional details regarding 
changes to the existing MOUs for this provision. DHR 
estimates that this provision will affect approximately 
1,022 budgeted positions. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

June 14, 2000 Finance and Labor Committee Meeting 

Uniforms 



Adds six classifications (7270-Watershed Keeper 
Supervisor, 7470- Watershed Keeper, 8201 -Adult Crossing 
Guard, 3202-Locker Room Attendant, 9110-Fare 
Collections Receiver and 9116-Senior Fare Collections 
Receiver) for which the City would be required to provide 
uniforms and/or special equipment and enhances the 
uniforms and replacement uniforms that the City will 
provide for 8214-Parking Control Officers and 8216- 
Senior Parking Control Officers. 

Department of Human Services (DHS) Provisions 

The proposed MOU includes new provisions for examining 
caseloads of DHS workers, seeking additional State 
funding for DHS workers and meeting and conferring 
with SEIU to reach agreement on caseload standards and 
for resolving workload issues for each DHS program. 

Currently, 2910 Social Workers, 2912 Senior Social 
Workers and 2914 Social Worker Supervisors in the Adult 
Protective Service unit receive 10 percent premiums 
above their base salary. Under the proposed MOU, this 
would remain the same. The proposed MOLT would also 
add a new provision that 2940 Protective Services 
Workers and 2914 Protective Services Worker 
Supervisors in the Family and Children's Services 
Division emergency response receive a five percent 
premium above their base pay. DHR advises that this 
new provision would affect approximately 200 budgeted 
positions. 

Lender the proposed MOU, the City, through the 
Department of Human Services (DHS), also agrees to 
develop a Licensing Supervisor Program for Protective 
Service Workers for which employees can be reimbursed 
up to $500 per year from the existing $40,000 annual 
Tuition Reimbursement Fund, and to include the 
necessary funding in the DHS budget for continued 
operation of such a Supervision Program. The employee 
would be required to reimburse the $500 to the City if the 
employee terminates participation in the two-year 
Supervision Program prior to completion. In addition, 
specific State licensing requirements for Licensed Clinical 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

June 14, 2000 Finance and Labor Committee Meeting 

Social Workers and Marriage and Family Therapists and 
the Supervision requirements for Protective Service 
Workers are included in the proposed MOU. 

Mental Health Rehabilitation Workers 

Effective July 1, 2000, the proposed MOU would 
eliminate the lowest four Steps (Steps 1 through 4) in the 
current 10 Step compensation schedule for Class 2303 
Mental Health Rehabilitation Workers and upgrade all 
employees to at least Step 5. Effective July 1, 2001, the 
proposed MOU would again eliminate the then lowest 
step for such employees, and again upgrade all these 
employees to the next highest step. DHR estimates that 
this provision will affect 49 budgeted positions. 

Volunteers and Vacancies 

Currently, the MOU states that the City will not use 
volunteers to displace permanent employees. The 
proposed MOU provides that the City will not use 
volunteers (e.g., CALWORKS clients) to displace any 
SEIU employees. In addition, the proposed MOU states 
that the City will not keep authorized budgeted positions 
vacant nor is it the intent of City Departments to initiate 
the reduction of the number of budgeted positions to use 
volunteers, CALWORKS, or other similar programs. 

Staffing Levels and Schedules 

The proposed MOU would require the City, if requested 
by SEIU, to meet and confer regarding reductions in the 
workforce that impact on the remaining workforce's 
working conditions. A specific new provision for the 
Department of Public Health would also require prior 
notification of SEIU of at least 40 working days regarding 
service changes which impact on SEIU members' wages, 
hours or working conditions. In addition, the proposed 
MOU would add a new provision to state that schedules of 
individual employees cannot be temporarily changed to 
avoid paying overtime. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

June 14, 2000 Finance and Labor Committee Meeting 

Public Utility Commission (PUC) Housing 

Currently, each PUC housing unit is rented to City 
employees at a flat rate of $50 per bedroom plus $50 
for each additional room. The proposed MOU would 
codify the rental rates to be paid by employees residing 
in City housing units at Hetch Hetchy of $50 per 
bedroom plus $50 for each additional room. Effective 
July 1, 2000, Bay Area Housing rental rates to be paid 
by such City employees would be $100 per bedroom 
plus $100 for each additional room, with annual cost- 
of-living adjustments beginning on July 1, 2001. 
Utilities in Hetch Hetchy housing would be billed at 
$60 per month and for Bay Area housing, utilities 
would be billed at the meter rates, where meters are in 
place. The proposed MOU would also guarantee 
housing for 7270 Watershed Keeper Supervisors and 
7470 Watershed Keepers that arc currently residing in 
such PUC housing, and thereafter, based on seniority 
and special skills. 

Meal Breaks 

Currently, although the MOU is silent, the Federal 
Fair Labor Standards Act requires payment of Meal 
Breaks. Therefore, the proposed MOU would codify- the 
requirements to provide a 30-minute paid meal break 
for 8216 Senior Parking Control Officers, when 
required to be on duty 

Workers Compensation Committee 

The proposed MOU creates a new Workers 
Compensation Labor Management Committee 
comprised of 16 members, of which eight members 
would be appointed by SEIL 7 and eight members would 
be appointed by the Human Resources Director. This 
Committee would meet quarterly and assigned 
employees would continue to be paid their regular 
salaries during the time they attend such meetings. 

Grievance Procedures 

The proposed MOU includes a new five percent annual 
interest penalty, that the City would have to pay if the 
City does not meet a 90-day deadline for payment of 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

June 14, 2000 Finance and Labor Committee Meeting 

settlement and arbitration awards. In addition, the 
proposed MOU adds the provision that an employee's 
immediate supervisor cannot act as the hearing officer 
in pre -disciplinary hearings, unless the hearing 
officer's recommendation is subject to administrative 
review. 

Charter Amendment 

Under the proposed MOU, the City agrees to jointly 
sponsor a Charter Amendment with SEIU for the 
November, 2000 ballot to provide all employees with 
improved retirement benefits of two percent at age 60. 
Most SEIU employees are Tier 2 employees, which are 
employees hired after November 1, 1976, and 
currently receive retirement benefits of 1.66 percent at 
age 60. Tier 1 employees are employees hired before 
November 1, 1996 currently receive retirement 
benefits of 2.0 percent at age 60. The Budget Analyst 
notes that a proposed Charter Amendment (File 00- 
0953) is currently pending in the Rules Committee of 
the Board of Supervisors for the November, 2000 
ballot. 

Comments: 1. Ms. Villagomez advises that the proposed SEIU 

contract does not contain any internal adjustments. 

2. According to Ms. Peg Stevenson of the Controller's 
Office, and as shown in the Attachment, the 
Controller's Office estimates that the proposed MOU 
will cost the City an additional $29,041,102 in FY 
2000-01 and a cumulative total of $181,804,259 over 
the three years of the MOU. The Budget Analyst 
concurs with the Controller's Office. Ms. Stevenson 
advises that the source of funds to pay for the subject 
increases would be the General Fund Salary and 
Benefits Reserve Fund, included in the proposed FY 
2000-01 budget for $34,659,656 as well as other 
Special Fund revenue sources. 

3. In summary, the proposed three-year MOU would 
(1) increase employee wages 14 percent at a total 
estimated cumulative salary cost of $77,101,082. i'2) 
provide additional payments for employees dependent 
health care at an estimated cost of $2,872,579 in FY' 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

June 14, 2000 Finance and Labor Committee Meeting 



2000-01, (3) add one additional paid floating holiday, 
resulting in four such floating holiday paid days off at 
an additional cost of $138,701 beginning in FY 2002- 
03, (4) enable employees to carryover unused holiday 
time, (5) increase night duty pay by two percent, (6) 
increase bilingual pay by 14 to 20 percent, (7) double 
standby pay on regular time and triple standby pay on 
holidays for Trauma Response Members, (8) add a 
Holdover Pay provision to provide for one and one-half 
times the regular rate of pay, (9) expand the Lead 
Person Premium to be paid to an unknown number of 
additional employees, (10) increase training premiums 
for Parking Control Officers by 43 percent, (11) provide 
$1.1 million for Pay Equity, (12) expand Departments' 
ability to hire employees above Step 1, (13) extend the 
Employee Assistance Program at a cost of $125,000, 
(14) provide Skilled Nursing Facility Pass-Through 
Premiums at a cost of $1.5 million in FY 1999-2000 to 
be paid by the State and an undetermined amount in 
FY' 2000-01, (15) add Department of Human Services 
provisions, (16) upgrade the salaries of all Mental 
Health Rehabilitation Workers. (17) agree not to keep 
authorized budgeted positions vacant or initiate the 
reduction of budgeted positions by using volunteers, 
(18) provide notification of service changes which 
impact on employees, (19) codify PUC Housing rental 
(20) create a Workers Compensation Committee, 
(21) specify additional grievance procedures, and (22) 
agree to jointly sponsor a November, 2000 Charter 
Amendment to increase retirement benefits. Overall, 
the Controller estimates these provisions will cost an 
additional $29,041,102 in FY' 2000-01 and a 
cumulative total of $181,804,259 over the three years 
oftheMOU. 

4. As noted above, the proposed MOU would add a 
provision that the City will not keep authorized 
budgeted positions vacant nor is it the intent of City 
departments to initiate the reduction of the number of 
budgeted positions by using volunteers, CALWORKS 
or other similar volunteer programs. The proposed 
MOU would also require the City, if reqvested by 
SEIL 7 . to meet and confer regarding reductions in the 
workforce that impact on the remaining workforces 
working conditions. In addition, the proposed MOU 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

June 14, 2000 Finance and Labor Committee Meeting 

would add a specific provision requiring the 
Department of Public Health to provide prior 
notification of at least 40 working days regarding 
service changes which impact on SEIU members' 
wages, hours or working conditions. The Budget 
Analyst questions these provisions since they may 
limit or inhibit the amount of control that the Board of 
Supervisors would have over the annual City budget 
and budgeting process. 

5. The Budget Analyst advises that the total estimated 
cost of all of the MOUs included on this Finance and 
Labor Committee calendar is $36,493,253 for FY 2000- 
01. As noted above, the Salary and Benefit Reserve 
Fund, included in the proposed FY 2000-01 budget 
currently totals $34,659,656. Ms. Stevenson advises 
that the General Fund Salary and Benefit Reserve 
Fund is intended to pay for only the City's General 
Fund salary, fringe benefit and related MOU costs, 
with the Special Fund Departments (e.g., Airport, 
Port, Rent Board, War Memorial, etc.) separately 
responsible for paying for their increased salary and 
fringe benefit costs. According to Ms. Stevenson, there 
will be sufficient funds to pay for all of the expenses 
related to the increased costs of these MOUs from the 
FY 2000-2001 General Fund Salary and Benefit 
Reserve Fund and other Special Fund revenues 
included in the City's FY 2000-01 annual budget. 

Recommendation: Approval of the proposed ordinance is a policy matter 
for the Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 




. Jun-08-00 02.34pm Fron-CCSF CONTROLLER OFFICE +415-554-7466 Attachment 

Y — -v^v Paee 1 ot 2" 

;fiSr&% CITY A ND COUNTY OF SA N FRANCISCO OFFICE OF THE CONTROLL 

Edward Harrinj 
Contn 

Matthew H. H) 
Chief Assistant Contn 



June 8, 2000 

Ms. Gloria L. Yi>ung, Clerk of the Board 

Board of Supervisors 

1 Dr. Carlton B. Goodlerc Place 

San Francisco, CA 94102 

RE: Memorandum of Understanding between SEIU Locals 250, 535, and 790 and the City and 
County :>f San Francisco, File No. 00-0991 

Dear Ms. Youn,,;. 

In accordance with Ordinance 92-94, I am subrrutung a cost analysis of an amendment to the 
Memorandum of Understanding (MOU) between SFJU Locals 250. 535, and 790 and the Cicy and County 
of San Francis :o. The MOU covers the period July 1, 2000 through June 30. 2003, and affects 
approximately 1,082 employees with a salary base of approximately $520.6 million. 

Based on our analysis, the amendment will result in estimated incremental costs of approximately $29 
million in FY .1000-200 1, $30.1 million in FY 2001-2002 and $34.5 million in FY 2002-2003. The 
amendment wi] I result in cost increases above the base salary amounts of approximately 5.58% in FY 
2000-2001, 5.4 ■',% in FY 2001-2002 and 5.97% in FY 2002-2003. Please see Attachment A for specific 
cost estimates. 

If you have any additional questions or concerns please contact me at 554-7500 or Peg Stevenson of ray 
staff at 554-752 2. 




Edward M. 
Controller 



Alice V Uagomez, ERD 
Harvey Rose. Budget Analyst 



41S-5S4-750O City Hall • 1 Dr. Carlton B. Goodka Placr • Room 316 • San Tnaciica Cx M10l-w>*» F.Oi -ili-55- * 



Jun-08-00 02:34pra Fron-CCSF CONTROLLER OFFICE 



+415-554-7466 



Attachment 
Page Zot 2 



Attachment A 

Services Employees International Union Local 790 
Estimated Costs ;:000-2001 to 2003 
Controller's Officii 



Annual Incremen t al Costs/(SavingsL 

Wage Increase 

3.00% on July 1. 2iX)0 and 2.5% January 1. 2001 
2.00% on July 1, 2i)01 and 3.00% January 2002 
3.50% on January 1 , 2003 

Internal Adjustments and Step AJustments 

Additional Floating Holiday 

Premium Pay Cringes 

Protective Servicu Workers Licensing 

Dependent Health d 75% of Kaiser coverage 

Pay Equity 

Wage-Related Fn ige Increases 

Total Estimated Incremental Costs 
Annual Amount ji.bove 1999-2000 Level 
Cumulative Total Above 1999-2000 Provisions 
Incremental Cost % of Salary Base 



FY 2000-2001 FY2001-2002 FY2002-2OO3 



$22,124,567 



95,146 



26,106,013 



28,870,502 



138.701 



308.502 






15,000 






2.872,579 






200.000 




900,000 


3,425,309 


3,999,441 


4,560,841 


29.041,102 


30.105.454 


34.470.044 


29,041,102 


59,146.556 


93,616,600 
$181,804,259 


5.58% 


5.48% 


5.97% 



Memo to Finance and Labor Committee 

June 14, 2000 Finance and Labor Committee Meeting 



Item 9 - File 00-1013 

Department: 

Item: 



Department of Human Resources (DHR) 

Ordinance implementing the provisions of a Memorandum of 
Understanding between the California Association of Interns 
and Residents and the City and County of San Francisco for 
the period from July 1, 2000 through June 30, 2003. 

Description: The proposed Memorandum of Understanding (MOU) 

between the California Association of Interns and Residents 
(CAIR) and the City and County of San Francisco is the 
successor agreement to the prior MOU which was first 
negotiated in FY 1990-1991, was extended three times, and 
will expire on June 30, 2000. This proposed three-year MOU, 
which is effective from July 1, 2000 through June 30, 2003, 
covers the following six classifications, comprising a total of 
197 employees as follows: 



2273 


Post M.D. 


I 


2275 


Post M.D. 


II 


2277 


Post M.D. 


III 


2279 


Post M.D. 


IV 


2281 


Post M.D. 


V 


2283 


Post M.D. 


VI 



The major changes of the new subject MOU from the prior 
MOU would include the following: 

Wage Increases: The proposed MOU would provide wage 
increases, totaling 14 percent over the three-year period of 
the MOU, to all covered employees based on the following 
schedule: 



Date 

July 1, 2000 

January 6, 2001 
August 4, 2001 

January 5, 2002 
August 3, 2002 



Percent Wage Increase 

3.0% 

2.5% 
2.0% 

3.0% 
3.5% 



These salary increases are consistent with the increases 
provided in other Service Employees International L T nion 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

June 14, 2000 Finance and Labor Committee Meeting 



(SEIU) MOUs. The increases in July of 2001 and July of 
2002 are delayed by two pay periods to fund the Patient Care 
Fund explained below. 

Patient Care Fund: The proposed MOU establishes a new 
special fund at San Francisco General Hospital (SFGH) for 
the purchase of needed medical equipment, patient materials 
or educational supplies for employees covered by the MOU 
necessary to improve patient care at SFGH. Under the 
proposed MOU, SFGH agrees to contribute to the Patient 
Care Fund the following amounts: 

FY 2000-2001 S 10,000 

FY 2001-2002 43,000 

FY 2002-2003 68.000 

Total S 12 1.000 

Medical License Expense Reimbursement: Under the 
proposed MOU, the City would provide partial 
reimbursement for the fee for the initial application and 
medical license required by the State of California, which 
was not previously provided, as follows: 25 percent 
reimbursement to residents who spend three to six months or 
rotations 1 at SFGH in their second year; 50 percent 
reimbursement to residents who spend six or more months or 
rotations at SFGH in their second year. Non-qualifying 
residents may receive partial reimbursement if they can 
verify that they will average three or more months or 
rotations at SFGH during their second and third year as 
follows: 25 percent reimbursement for three to six months or 
rotations; 50 percent for six or more months or rotations. 
According to Ms. Alice Villagomez of HRD, employees 
covered by the proposed MOU would be eligible for the 
medical license expense reimbursement on a one-time basis. 

Meals: In the prior MOU, the City and Department provided 
interns and residents with meal cards which could be used 
for breakfast and dinner. In the proposed MOU the meal 
cards could also be used for lunch. 



1 "Rotation" refers to the time period that interns and residents are assigned to San Francisco 
General Hospital. The interns and residents who are covered by this proposed MOU are employees 
of the University of California at San Francisco, and are only considered to be employees of the City, 
and are only covered bv the proposed MOU, for the time period (rotation) for which thev are assigned 
to SFGH. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

June 14, 2000 Finance and Labor Committee Meeting 



Parking: In practice, the City has provided 26 parking spaces 
in Emergency Lot B for interns and residents who are on call 
at SFGH. The proposed MOU codifies this practice. In 
addition, SFGH will provide 13 placards for use in the 
Emergency Lot B for intern and resident use only between 
the hours of 6 p.m. and 8 a.m. 

Comment: 1. The above described provisions of the proposed MOU 

relate to the major financial changes from the prior MOU. 
Other provisions in the new subject MOU include 
establishment of a grievance procedure, including binding 
arbitration, and a health and safety training program. 

2. According to Ms. Villagomez, whether and to what extent 
the University of California or the City and County of San 
Francisco controls the terms and conditions of interns' and 
residents' employment has been a subject of long dispute and 
recurrent litigation. Ms. Villagomez states that the City and 
the Union entered into a settlement agreement in 1990 that 
permits the City and the Union to negotiate over local area 
conditions but not over wages, benefits, vacation, hours 
scheduling, or supervision, hiring, selection, assignment and 
discipline of residents. Ms. Villagomez states that under the 
proposed MOU the City has provided wages to the interns 
and residents which are the same as those provided in other 
SEIU MOUs. In October of 1999, prior to negotiation of the 
proposed MOU, the State Public Employment Relations 
Board (PERB) granted interns and residents collective 
bargaining rights with the University of California except 
when the residents are working at SFGH and other non- 
University owned facilities. According to Ms. Villagomez, it 
is unclear to what degree these collective bargaining rights 
impact the City's and the Union's rights to negotiate local 
area conditions and other terms of employment under the 
1990 settlement agreement. However, according to Ms. 
Villagomez, the City does not expect further dispute 
regarding the City's collective bargaining rights with the 
interns and residents. 

3. According to Ms. Peg Stevenson of the Controller's Office, 
and as shown in the Attachment, the Controller's Office 
estimates that the proposed MOU will cost the City an 
additional $396,595 in FY 2000-01 and a cumulative total of 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

June 14, 2000 Finance and Labor Committee Meeting 

$2,580,325 over the three years of the MOU. The Budget 
Analyst concurs with the Controller's Office. Ms. Stevenson 
advises that the source of funds to pay for the subject 
increases would be the General Fund Salary and Benefits 
Reserve Fund, included in the proposed FY 2000-01 budget 
for $34,659,656 as well as other Special Fund revenue 
sources. 

4. The Budget Analyst advises that the total estimated cost 
of all of the MOUs included on this Finance and Labor 
Committee calendar is $36,493,253 for FY 2000-01. As noted 
above, the Salary and Benefit Reserve Fund, included in the 
proposed FY 2000-01 budget currently totals $34,659,656. 
Ms. Stevenson advises that the General Fund Salary and 
Benefit Reserve Fund is intended to pay for only the City's 
General Fund salary, fringe benefit and related MOU costs, 
with the Special Fund Departments (e.g.. Airport. Port, Rent 
Board. War Memorial, etc.) separately responsible for paying 
for their increased salary and fringe benefit costs. According 
to Ms. Stevenson, there will be sufficient funds to pay for all 
of the expenses related to the increased costs of these MOUs 
from the FY* 2000-2001 General Fund Salary and Benefit 
Reserve Fund and other Special Fund revenues included in 
the City's FY' 2000-01 annual budget. 

Recommendation: Approval of the proposed ordinance is a policy matter for the 
Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Jun-aa-OQ 04:32pm FruKCSF CONTROLLER OFFICE *415-55i-7AJifi Attachment, Page 1 o f 2 
—^^ " 5 "« ">ao r=t*1 ? 32/03 p=53u 

CITY AM) COUNTY OF SAN FRANCISCO OFFICE OF THE CONTROLLER 




Edward Harrington 
Controller 

Matthew H. Hyrael 
Chief Assistant Controller 



June 8, 2000 

Ms. Gloria L. Young, Cleric of the Board 

Board of Supervisors 

1 Dr. Carlton B. Goodlett Place 

San Francisco, CA 94102 

RE: Memoraridum of Understanding between rhe California Association of Interns and 
Resident!;/Committee of Interns and Residents SEIU and the City and County of San Francisco, 
File No. 130-1013 

Dear Ms. Young, 

In accordance with Ordinance 92-94, I am submitting a cost analysis of an amendment to the 
Memorandum of Understanding (MOU) between the California Association of Interns and 
Residents/Comriuttee of Interns and Residents SEIU, and the City and County of San Francisco. The 
MOU covers the period July 1, 2000 through June 30, 2003, and affects approximately 204 employees 
with a salary base of approximately 58.1 million. 

Based on our iinalysis, the amendment will result in estimated incremental costs of approximately 
5397,000 in FY 2000-2001, $455,000 in FY 2001-2002 and S480,000 in FY 2002-2003. Including 
wage-related fringe benefits, the amendment will result in a cost increase above the base salary amount 
of approximately 4.89% in FY 2000-2001, 5.32% in FY 2001-2002 and 5.35% in FY 2002-2003. 
Please see Attachment A for specific cost estimates. 

If you have any additional questions or concerns please contact me at 554-7500 or Peg Stevenson of my 
staff at 554-7522. 



Sincerely, 



:dwardM. MaiTmgtonss^^ — 
Controller ff 

cc: Alice Villagomez, ERD 

Harvey Rose, Budget Analyst 



City Hull • 1 Or. Girtlon B. Goodlctl Race • Room J16 • Son FrancsJCO C\ M10Z-1694 



Jun-08-00 04:32 P (o Fron-CCSF C0NTROLLS3 OFFICE 



Attachment A 

Interns and Residents Association 
Estimated Costs 21)00-2001 to 2003 
Controller's Office 



+415-5:4-7466 



T-481 P 33/03 F-330 

Attachment 
Paee 2 of 2 



Annual Increment. I Costs/(Savrinqs) 

Wage Increase 

3.00% on July 1, 2I!00, and 2.50% on January 6. 2001 
2.00% on August 4, 2001 and 3.00% on January 5, 2002 
3.50% on August 2 2002 

Patient Care Fund 

Licensing/Appllcjition Coat Reimbursement 

Wage-Related Fringe Increases 

Total Estimated Incremental Coats 
Annual Amount Above 2000-2001 Level 
Cumulative Total Above 2000-2001 Provisions 
Incremental Cos: % of Salary Base 



FY 2000-2001 



(344,366 



391.794 



FY20O7-2003 



421.599 



10.000 


33.000 


25.000 


15,300 






26.929 


30 638 


32.977 


396.595 


455.432 


479.S76 


396,595 


852,027 


1.331.703 
2.580,325 


4.89% 


5.32% 


5.35% 



Memo to Finance and Labor Committee 

June 14, 2000 Finance and Labor Committee Meeting 



Item 10 - File 00-1014 

Department: 

Item: 



Department of Human Resources (DHR) 

Ordinance adopting and implementing the provisions of a 
Memorandum of Understanding between the Teamsters 
Local 856 and the City and County of San Francisco for 
Supervising Nurses to be effective for the period from July 1, 
2000, through June 30, 2003. 



Description: The proposed Memorandum of Understanding (MOU) 

between the Teamsters Local 856 and the City and County of 
San Francisco is the successor agreement to the existing 
MOU which expires on June 30, 2003. The proposed three- 
year MOU would be effective for the period from July 1, 
2000, through June 30, 2003 and covers the following four 
classifications, comprising a total of 130 employees. 

2322 Nurse Manager 

2324 Nursing Supervisor 

2326 Nursing Supervisor, Psychiatric Unit 

2350 Instructor of Nursing 

The major changes of the new subject MOU from the prior 
MOU include the following: 

Wage Increases: The proposed MOU would provide wage 
increases, totaling 15 percent over the three-year period of 
the MOU, to all covered employees based on the following 
schedule: 



Date 

July 1, 2000 

January 6, 2001 
July 1, 2001 

January 5, 2002 
July 1, 2002 

January 4, 2003 



Percent Wage Increase 

3.0% 

2.5% 
3.0% 

2.0% 
2.5% 

2.0% 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

June 14, 2000 Finance and Labor Committee Meeting 



Internal Adjustment: Class 2324 Nursing Supervisor with a 
Master's Degree would receive the same salary as Class 2326 
Nursing Supervisor, Psychiatric with a Master's Degree, 
which represents an approximate 3 percent base salary 
increase for approximately 6 to 10 employees, in addition to 
the scheduled wage increase noted above. As noted in 
Attachment I, provided by DHR, the Department is 
considering consolidation of these two positions into one 
position, and the purpose of this adjustment is to provide 
nurses m Class - 32 1 who have a Master's Degree the same 
level of compensation as nurses in Class 2326 who have a 
Master's Degree. 

Longevity Premium and Retention Bonus: Presently, the 
longevity premium provides a fixed rate longevity premium 
of $0.36 per hour (approximately one percent of base salary > 
in addition to the base hourly wage rate for employees who 
have 10 or more years continuous full-time or part-time 
service in any registered nurse classification and of $0.61 per 
hour (approximately 1.5 percent of base salary) for employees 
who have 15 or more years continuous full-time or part-time 
service in any registered nurse classification. In the 
proposed M( >!' the longevity premium would sunset on June 
30, 2001, and be replaced with a retention bonus effective 
July 1. 2001. The retention bonus provides employees, with 
10 or more years continuous full-time or part-time service in 
any registered nurse classification, a wage increase equal to 
one percent per hour of the base hourly rate, and employees 
with 1") or more years continuous full-time or part-time 
service a wage increase of two percent per hour of the base 
hourly rate Approximately 77 employees would be eligible 
to receive the retention bonus. 

Longevity Leave: The proposed MOU would provide seven 
days of longevity leave for employees who have 15 years or 
more of continuous service, which is an increase of one day. 
The prior MOU provided a maximum of six days of longevity 
leave for employees who have 10 years or more of continuous 
service. Approximately 85 employees would be eligible to 
receive the one additional day of longevity leave. 

New Premiums: The proposed MOU would provide a $75 
biweekly premium to employees who are responsible for 24- 
hour clinical unit operations which was not previously 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

June 14, 2000 Finance and Labor Committee Meeting 

provided. Also, the proposed MOU would provide Lead 
Manager Pay equal to an additional 5 percent per hour above 
the base salary rate for employees who perform specific 
leadership and employee management responsibilities which 
was not previously provided. Approximately 3 to 5 
employees would be immediately eligible for Lead Manager 
Pay. 

Other Economic Improvements: The proposed MOU would 
(a) increase the uniform allowance for each eligible employee 
from $175 to $225 per year, (b) increase the tuition 
reimbursement allocation from $500 to $1,000 per year and 
would include books, (c) reimburse for professional licensing 
dues, equal to approximately $80 every two years, (d) provide 
holiday pay equal to time and one-half the regular rate of 
hourly pay for as-needed employees who work on 
Thanksgiving, Christmas, or New Year's Day, and (e) 
increase the City's contribution for dental benefits per 
employee in FY 2002-2003 by $5.00 per month or $60.00 per 
year, from the present contribution of $68.40 per month or 
$820.80 per year to $73.40 per month or $880.80 per year, a 
7.3 percent increase. 

Comments: 1. The above described provisions of the proposed MOU 

relate to the major financial changes from the prior MOU. 
Other provisions in the subject MOU include (a) a new 
grievance procedure which allows employees to grieve 
disciplinary suspension and disciplinary discharge and 
revises timelines and definitions to be consistent with other 
agreements, (b) establishment of a Joint Labor-Management 
Committee to address the need for adequate clinical 
supervision to ensure safe working conditions and quality 
patient care, and (c) provision for Human Resources and 
Management training to enhance employees' supervisory 
skill base. 

2. In addition, the proposed MOU contains language which 
clarifies that the employees would receive evening or night 
shift differential pay only for hours actually worked. 
Approximately 15 employees who currently receive evening 
or night shift differential pay for all paid hours, not just 
hours actually worked, would be grandfathered in and would 
continue to receive the differential pay for all paid hours. 
The proposed MOU language would result in a cost savings 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

June 14, 2000 Finance and Labor Committee Meeting 



to the City for all new employees who would receive the 
evening or night shift differential for only the hours actually 
worked. 

Additionally, the proposed MOU would codify the existing 
standard of practice of one-year probationary period for all 
permanent appointees, as provided by the Rules of the Civil 
Service Commission. 

3. The MOL' provides for replacing the existing longevity 
premium, which is a fixed rate of $0.36 per hour after 10 
years of service and $0.61 per hour after 15 years of service, 
with a retention bonus, which is a percentage of the base 
hourly wage rate equal to one percent of pay after 10 years of 
service and two percent of pay after 15 years of service, 
effective July 1. 2001. The Budget Analyst notes that 
replacing the fixed rate longevity premium with a retention 
bonus of one or two percent of base pay results in an increase 
at an accelerating rate, since such premiums will now be 
based on a percentage of salary rather than a fixed amount. 

■\ According to Ms. Peg Stevenson of the Controller's Office, 
and as shown in the Attachment, the Controller's Office 
estimates that the proposed MOU will cost the City an 
additional $759,630 in FY 2000-01 and a cumulative total of 
$4,972,976 over the three years of the MOU. The Budget 
Analyst concurs with the Controller's Office. Ms. Stevenson 
advises that the source of funds to pay for the subject 
increases would be the General Fund Salary and Benefit- 
Reserve Fund, included in the proposed FY 2000-01 budget 
for $34,659,656 as well as other Special Fund revenue 
sources. 

5. The Budget Analyst advises that the total estimated cost 
of all of the MOUs included on this Finance and Labor 
Committee calendar is $36,493,253 for FY 2000-01. As noted 
above, the Salary and Benefit Reserve Fund, included in the 
proposed FY 2000-01 budget currently totals $34,659,656. 
Ms. Stevenson advises that the General Fund Salary and 
Benefit Reserve Fund is intended to pay for only the City's 
General Fund salary, fringe benefit and related MOU a 
with the Special Fund Departments (e.g.. Airport, Port. Rent 
Board. War Memorial, etc.) separately responsible for paying 
for their increased salary and fringe benefit costs. According 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

June 14, 2000 Finance and Labor Committee Meeting 

to Ms. Stevenson, there will be sufficient funds to pay for all 
of the expenses related to the increased costs of these MOUs 
from the FY 2000-2001 General Fund Salary and Benefit 
Reserve Fund and other Special Fund revenues included in 
the City's FY 2000-01 annual budget. 

Recommendation: Approval of the proposed ordinance is a policy matter for the 
Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



City and County of San Francisco 




Attachment 



Department of Human Resourc 



ANDREA R. GOURDINE 
HUMAN RESOURCES DIRECTOR 



MEMORANDUM 



TO: Harvey Rose, Budget Analyst 

FROM: Alice Villagomez, Deputy Director. ERD 

Department of Human Resources 

DATE: June 7. 2000 

RE: Memorandum of Understanding between the Freight Checkers, 

Clerical Employees «& Helpers, Local 856 (Supervising Registered 

Nurses) and the City and County of San Francisco 
July I, 2000 through .June 30, 2003 



Salary Adjustment for Class 2324 Nurse Supervisor 

There are two classifications that arc essentially identical: 2324 Nurse Supervisor, and 
2326 Nurse Supervisor, Psychiatric. The department is considering consolidating the two 
in the future. Currently the only difference between the classes is where they are 
assigned. However, the 2326 has always had additional compensation for those in the 
class who have a Master's degree. The adjustment of the 2324 salary to pro\ide 
additional compensation for those with i M ister 's degree acknowledges that these 
employees should receive the same pay as their 2326 counterparts. 



Peg Stevenson. Controller's Office 
Severin Campbell, Budget Analyst 
Emily Prescott. ERD 

File ' 



G:\SHARE ERD BARG200OSupNurse^Memos Finance.mem2.doc 




Jun-08-00 02:34pm Frora-CCSF CONTROLLER OFFICE Ml 5-554-7466 Attachment II 

> ^. x Fage 1 of 2 

CITY A SD COUNTY OF SAN FRANCISCO OFFICE OF THE CONTROLLER 

Edward Harrington 
Controller 

Matthew H. Hymel 
Chief Assistant Controller 

\ 

\ 
June 8, 2000 

Ms. Gloria L. Yining, Clerk of the Board 

Board of Supervisors 

1 Dr. Carlton B. Goodlett Place 

San Francisco, C A 94 1 02 

RE: Memorandum of Understanding between the Supervising Registered Nurses Local 856 and 
the City ind County of San Francisco, File No. 00-1014 

Dear Ms. Younj! , 

In accordance with Ordinance 92-94, I am submitting a cost analysis of an amendment to the 
Memorandum <:f Understanding (MOU) between the Supervising Registered Nurses and the City and 
County of San Francisco. The MOU covers the period July 1, 2000 through June 30, 2003, and affects 
approximately ] 53 employees with a salary base of approximately $13.7 million. 

Based on our inalysis, the amendment will result in es tim ated incremental costs of approximately 
$760,000 in FY 2000-2001, $926,000 in FY 2001-2002 and $812,000 in FY 2002-2003. The amendment 
will result in cost increases above the base salary amounts of approximately 5.53% in FY 2000-2001, 
6.39% in FY :!001-2002 and 5.33% in FY 2002-2003. Please see Attachment A for specific cost 
estimates. 

If you have an)' additional questions or concerns please contact me at 554-7500 or Peg Stevenson of my 
staff at 554-7522. 



Sincerely, 




ITIjUU-^ 



Edward M/Haiiingto/y 



Controller 






Alice Villagomez, ERD 
Harvey -lose, Budget Analyst 



City H*U • 1 Dr. Carlloo B. Goodlell Pl»cr • Room 316 • Sao Francisco CA 94102-4*94 



fAX415-i54-74t 



jun-08-00 02:34pm Froa-CCSF CONTROLLER OFFICE 



-415-554-7466 



Attachment ] 
Page 2 of 2 



Attachment A 

Supervising Nursss Local 656 
Estimated Costs ;:000-200i to 2003 
Controller's Officii 



Annual Increm enl al Cosis/(Savinqs) 

Wage Increase 

3.00% on July I, i 000 and 2.50% on January 6, 2001 
3.00% on July 1, : 001 and 2 00% on January 5. 2002 
2.50% on Jury 1 . 7 002 and 2.00% on January 1 , 2003 

Adjustment Masdtr's Degree Holders Class 2324 

Changes In Long<»tlvity/Retentlon Pay 

Premium Pay Changes 

Longetlvlty Leav 

Uniform Allowsn;* and Professional Licensing 

Dental Benefits Increase 

Wage-Related Fr nge Increases 

Total Estimated Incremental Costs 
Annual Amount .±>ove 2000-2001 Level 
Cumulative Tota Above 2000-2001 Provisions 
Incremental Cos; % of Salary Base 



FY 2000-2001 

$563,301 

22.560 

17,941 
29.240 
13.770 

92.818 



759.630 



759.630 



553% 



ry2ooi.20Q2 



760.719 



U B42 



116.542 



926.104 



1. 685,733 



6 90% 



FY2002-2003 



605.038 



6.594 



6,120 

9,180 

104.946 



811.880 



2.497.613 

4,942,976 

5.33% 



Memo to Finance and Labor Committee 

June 14, 2000 Finance and Labor Committee Meeting 



Item 11 - File 00-1016 

Department: 

Item: 



Description: 



Department of Human Resources 

Ordinance adopting and implementing the terms of a 
Memorandum of Understanding between the Service 
Employees International Union, Local 790, AFL-CIO and the 
City and County of San Francisco for Staff Nurses and Per 
Diem Nurses, to be effective for the period from July 1, 2000 
through June 30, 2003. 

The proposed Memorandum of Understanding (MOU) 
between Service Employees International Union (SEIU) 
Local 790 and the City and County of San Francisco is the 
successor agreement to the existing MOU which expires on 
June 30, 2000. The proposed three year MOU, which is 
effective from July 1, 2000 through June 30, 2003, covers the 
following 7 classifications, comprising a total of 1,284 
employees: 

2320 Registered Nurse 

2323 Clinical Nurse Specialist 

2330 Anesthetist 

2340 Operating Room Nurse 

2830 Public Health Nurse 

2328 Nurse Practitioner 

P103 Per Diem Registered Nurse 

The major changes of the new subject MOU from the prior 
MOU include the following: 

Wage Increases: The proposed MOU would provide wage 
increases, totaling 15 percent over the three-year period of 
the MOU, to all covered employees based as follows: 



Date 

July 1, 2000 

January 6, 2001 
July 1, 2001 

January 5, 2002 
July 1, 2002 

January 4, 2003 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Percent Wage Increase 

3.0% 

2.5% 
3.0% 

2.0% 
2.5% 

2.0% 



Memo to Finance and Labor Committee 

June 14, 2000 Finance and Labor Committee Meeting 



Class 2328 Nurse Practitioners would receive an additional 2 
percent pay increase on July 1, 2000 and another 3 percent 
pay increase on July 1, 2001. 

Internal Adjustment: Class 2830 Public Health Nurse would 
receive the same salary as Class 2320 Registered Nurse. 
According to Ms. Alice Villagomez of DHR, Class 2830 Public 
Health Nurse was adjusted downward to the salary level of 
Class 2320 Registered Nurse in 1997. Under the proposed 
MOU, Class 2830 Public Health Nurse would include a 
seventh salary step, which will be $2,225 per hour more than 
Step 6 of Class 2320 Registered Nurse. Class 2830 Public 
Health Nurses are eligible to advance to Step 7 after one year 
of service at Step 6. Attachment I, provided by DHR, further 
explains the internal adjustment. 

Longevity Premium and Retention Bonus: The longevity 
premium in the existing MOU provides for a fixed rate of 
$0.30 per hour in addition to the base hourly wage rate for 
employees who have 10 or more years full-time or part-time 
permanent service in the same registered nurse 
classification. In the proposed MOU the longevity premium 
would be changed from the fixed rate of $0.30 per hour to a 
percentage rate of one percent of the base hourly rate for the 
affected employees. The longevity premium would sunset on 
June 30. 2001. and be replaced with a retention bonus 
effective July 1. 2001. The retention bonus, which does not 
apply to Per Diem Nurses, provides employees with 5 or 
more years full-time or part-time service in any registered 
nurse classification a wage increase equal to one percent per 
hour of the base hourly rate, and employees with 10 or more 
years of service a wage increase of two percent of the base 
hourly rate. 

Charge Nurse Pav: The proposed MOU would change Charge 
Nurse Pay from a fixed rate of $1.20 per hour to a percentage 
rate equal to 5 percent of the base hourly rate of pay. 

Double Ward Assignment Pav: Premium pay for Nurses who 
are assigned to work concurrently in more than one ward per 
shift at Laguna Honda Hospital would change from the 
current fixed rate of $2.40 per hour to a percentage rate 
equal to 7.5 percent of the base hourly rate. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

June 14, 2000 Finance and Labor Committee Meeting 



Interpreter-Translator Pav: Under the proposed MOU 
interpreter-translator pay would increase from $17.50 per 
week to $25 per week 

Tuition Reimbursement: The Registered Nurse tuition 
Reimbursement fund allocation would increase from $60,000 
to $100,000 per fiscal year and the maximum tuition 
reimbursement allocation for each Nurse would increase 
from $500 to $1,000 per fiscal year. 

Uniform Allowance: Under the proposed MOU the uniform 
allowance for Nurses (excluding Per Diem Nurses) would 
increase from $175 to $225 per year. Allowances for smocks 
and lab coats would increase from $100 to $175 per year. 

Holiday Pav for Per Diem Nurses: Under the proposed MOU 
Per Diem Nurses would receive pay at time and one-half for 
working on Thanksgiving Day, Christmas Day, or New 
Year's Day. According to Ms. Alice Villagomez of DHR, Per 
Diem Nurses do not currently receive time and one-half for 
working on these three holidays. 

Acting Assignment Pav: Previously, this provision applied 
only to Class 2320 Registered Nurse who were temporarily 
assigned to perform the duties of Class 2322 Head Nurse. 
Under the proposed MOU a Nurse temporarily assigned to 
perform the duties of any higher classification would be 
eligible for acting assignment pay. 

Health at Home On-Call Premium: Under the proposed 
MOU, Health at Home Nurses who are assigned to be on-call 
between the hours of 5 p.m. to 8 a.m. will receive 3 hours of 
pay at the Per Diem rate of pay for each on-call shift 
assignment. If the Nurse is required to make a patient visit 
during the on-call shift, the Nurse is paid at the rate of time 
and one-half for the period of actual work. According to Ms. 
Villagomez, this provision codifies the on-call practice 
currently in place. 

Reimbursement for Use cf Personal Cell Phones: Nurses who 
use personal cell phones for City business will be reimbursed 
for incurred expenses, for which they are not reimbursed 
under the existing MOU. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

June 14, 2000 Finance and Labor Committee Meeting 

Skilled Nursing Facility "Pass Through" Premium: Pursuant 
to the provisions of State Welfare and Institutions Code 
Section 14110.6, the State of California provides pass- 
through funds to the City for compensating health care 
employees who are assigned to skilled nursing facilities. As a 
result of the pass-through funds. Nurses assigned to skilled 
nursing facilities (such as Laguna Honda Hospital) would 
receive an additional pay premium (Files 00-0990 and 00- 
0991). The proposed MOU provides for a reopener to the 
MOU to determine the rate of this premium. 

Comments: 1. The above described provisions of the subject MOU relate 

to the major financial changes from the prior MOU. Other 
provisions in the subject MOU include: (a) changes to the 
grievance procedure, including expanded categories of 
grievances which may be processed through an expedited 
arbitration process, and strengthening of grievance 
timelines; (b) disciplinary hearing rights for Per Diem Nurses 
and the right for Per Diem Nurses who have more than 1,040 
hours of service to appeal terminations, (c) changes to 
staffing guidelines to reflect current staffing patterns; (d) 
transfer of dental insurance coverage from the Health Care 
Employers/Employees Dental Trust to the City's Health 
Services System; (e) granting the City the ability to appoint 
into permanent positions above the entry level salary step if 
the appointee possesses special qualifications or skills; (f) 
incorporation of the current Per Diem side agreement into 
the MOU which defines the seniority and scheduling 
procedures for Per Diem Nurses; (g) provision that 
permanent appointees shall serve a six-month probationary 
period; (h) provision that it is the Department's intent to 
avoid the use of mandatory overtime; (i) provision for 
training and procedures to promote health and safety and 
protection from blood borne pathogen exposure; (j) provision 
that Nurses assigned to Forensic Services who lose their jail 
security clearance for a non-terminable offense will be 
reassigned to another position; (k) provision that a Nurse 
may be placed on a developmental plan when there is a 
documented departure from standards of competence; (1) 
parking spaces for Nurse-Responders in Sexual Assault 
cases in the SFGH Emergency Department parking lot; and 
(m) provision that Nurses assigned to jury duty or 
subpoenaed to be a courtroom witness will not be required to 
work an evening or night shift immediately after jury duty. 

BOARD OF SUPERVISORS 
BUDGET ANALYST 






Memo to Finance and Labor Committee 

June 14, 2000 Finance and Labor Committee Meeting 



2. As stated previously, the fixed rate longevity premium of 
$0.30 per hour will change to a percentage rate equal to 1 
percent of the base hourly rate. The retention bonus, which 
will become effective July 1, 2001 when the longevity 
premium sunsets, will be a percentage rate equal to 1 
percent of the base hourly rate for Nurses with 5 or more 
years of service and 2 percent of the base hourly rate for 
Nurses with 10 or more years of service. Additionally, the 
Charge Nurse premium will change from the fixed rate of 
$1.20 per hour to a percentage rate of 5 percent of the 
Nurse's base hourly rate of pay and the Double Ward 
Assignment premium will change from the fixed rate of $2.40 
per hour to a percentage rate of 7.5 percent of the base 
hourly rate of pay. The Budget Analyst notes that these 
premiums will result in an increase at an accelerating rate, 
since such premiums will now be based on a percentage of 
salaries rather than a fixed amount. 

3. According to Ms. Peg Stevenson of the Controller's Office, 
and as shown in the Attachment, the Controller's Office 
estimates that the proposed MOU will cost the City an 
additional $6,131,746 in FY 2000-01 and a cumulative total 
of $37,360,612 over the three years of the MOU. The Budget 
Analyst concurs with the Controller's Office. Ms. Stevenson 
advises that the source of funds to pay for the subject 
increases would be the General Fund Salary and Benefits 
Reserve Fund, included in the proposed FY 2000-01 budget 
for $34,659,656 as well as other Special Fund revenue 
sources. 

4. The Budget Analyst advises that the total estimated cost 
of all of the MOUs included on this Finance and Labor 
Committee calendar is $36,493,253 for FY 2000-01. As noted 
above, the Salary and Benefit Reserve Fund, included in the 
proposed FY 2000-01 budget currently totals $34,659,656. 
Ms. Stevenson advises that the General Fund Salary and 
Benefit Reserve Fund is intended to pay for only the City's 
General Fund salary, fringe benefit and related MOU costs, 
with the Special Fund Departments (e.g., Airport, Port, Rent 
Board, War Memorial, etc.) separately responsible for paying 
for their increased salary and fringe benefit costs. According 
to Ms. Stevenson, there will be sufficient funds to pay for all 
of the expenses related to the increased costs of these MOUs 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

June 14, 2000 Finance and Labor Committee Meeting 

from the FY 2000-2001 General Fund Salary and Benefit 
Reserve Fund and other Special Fund revenues included in 
te City's FY 2000-01 annual budget. 

Recommendation: Approval of the proposed ordinance is a policy matter for the 
Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



City and County of San Francisco 




Attachment I 
Page 1 ot 2 

Department of Human Resources 



ANDREA R. G0URDINE 
HUMAN RESOURCES DIRECTOR 



June 7, 2000 



TO: 



FROM: 



RE: 



Harvey Rose, Budget Analyst 
Board of Supervisors 

Alice Villagomez, Deputy Director- 
Employee Relations Division 

Memorandum of Understanding between the Service Employees 
International Union Local 790 Staff and Per Diem Nurses and the City 
and County of San Francisco, July 1, 2000 through June 30, 2003 
Class 2830 Public Health Nurses (Paragraph 248) 



Background 

In fiscal year 1980-1981 a $2,225 difference existed between the top steps of Class 

2830 Public Health Nurse and 2320 Registered Nurse. 

Effective July 1, 1997, 4 new salary steps were added to the bottom of the Class 2830 
Public Health Nurse salary range to correspond with the Steps 1-4 of the Class 2320 
Registered Nurse range. Steps 1 and 2 of 2830 were revised to correspond with Steps 
5 and 6 of 2320, while steps 3-6 of 2830 remained unchanged. The net effect was that 
the first six steps of the Class 2830 range corresponded to the six steps of Class 2320, 
and Steps 7-10 of Class 2830 were the "old Steps 3-6." 

The negotiated increases for 1997-2000, applicable to class 2320, only applied to the 
first six steps of 2830 so that the first 6 steps of both classes remained identical. The 
top four steps of 2830 received no increases, with the intent that over time, the top 4 
steps would be eliminated once the hourly difference between any two steps became 
less than $.25 per hour. 



2000-2003 MOU Negotiated Change 

For the 2000-2003 MOU, the parties have agreed to restore the historical $2,225 

difference between the existing top steps of classes 2830 and 2320. The parties 

accomplished this by keeping steps 1-6 of both classes identical and adding a new Step 

7 to Class 2830 Public Health Nurse, which is $2,225 higher than Step 6 of Class 2320 

Registered Nurse. This new Step 7 replaces the former Steps 7-9 of the Class 2830 

range. 

Cc: Severin Campbell 
File 



\\DHR-MIS-01SVR\DATA\SHARE\ERD\BARG2000\Nurses\2830 PHN Summary doc 




Jun-OB-00 02:35pm Fror-CCSF CONTROLLER OFFICE +41 5-554-746S Attachment I 

yare z ot 2 ' 
CITY A ND COUNTY OF SAN FRANCISCO OFFICE OF THE CONTROL! 

y^SSH}5|£/ Edward Hurnn 

Contr 

\ I jrthew HL H; 

Chief Assistant Contr 



June 8, 2000 

Ms. Gloria L. Young, Clerk of the Board 

Board of Supervisors 

1 Dr. Carlton B Goodlett Place 

San Francisco, CA 94102 

RE: Memorandum of Understanding between the Staff and Per Diem Nurses, SEIU Local 790 and 
the City and County of San Francisco, File No. 00-1016 

Dear Ms. Youn;;, 

In accordance with Ordinance 92-94, I am submitting a cost analysis of a Memorandum of Understanding 
(MOU) betwec a the Staff and Per Diem Nurses, SEIU Local 790 and the City and County of San 
Francisco. The MOU covers the period July 1, 2000 through June 30. 2003, and affects approximately 
1,421 employees with a salary base of approximately $97.3 million. 

Based on our z.nalysis, the amendment will result in estimated incremental costs of approximately S6.1 
million in FY 2000-2001, $6.7 million in FY 2001-2002 and $5.6 million in FY 2002-2003. The 
amendment will result in cost increases above the base salary amounts of approximately 6.3% in FY 2000- 
2001, 6.5% in FY 2001-2002 and 5.19% in FY 2002-2003. Please see Attachment A for specific cost 
estimates. 

If you have any additional questions or concerns please contact me at 554-7500 or Peg Stevenson of my 
staff at 554-7512. 




Edward M< Harrington^? 
Controller 

cc: Alice VLUagomez, ERD 

Harvey Rose, Budget Analyst 



City H«U • 1 Dr. Carlton B. GooUUrt PUcc • Boom Jli • S»o Fr»ncx*» Ca W102-4&** r AX 415-55 | 



Jun-08-00 G2:35pra From-CCSF CONTROLLER OFFICE +415-554-7466 Attachment II 



Attachment A 

Staff and Per Diem Nurses Local 790 
Estimated Costs 1:000-2001 to 2003 
Controller's Office 



Annual Incremen t al Costs/fSavtnqs) FY 2000-2001 ^2001-2002 FY2002-2u03 

Wage Increase 

3.50% on July 1 . 2<X>0 and 2.00% on January 6, 2001 $4,379,624 

3.00% on July 1, 2iX)1 and 2.00% on January 5, 2002 5,137,299 

2.50% on July 1 , 2002 and 2.00% on January 1 . 2003 4,857,522 

Internal Adjustments 

Nurse Practitioner 2% on July 1. 2000 and 3% on July 1, 2001 

Public Health Nun. 9 S2.225/hour increase on July 1, 2000 

Changes in Longutivlty/Retention Pay 

Other Changes to Premium Pay 

Tuition Reimbursement Fund 

Uniform Allowan:* 

Wage-Related Fn nge Increases 

Total Estimated Incremental Costs 
Annual Amount Above 2000-2001 Level 
Cumulative Total Above 2000-2001 Provisions 
Incremental Cos % of Salary Base 



118,728 


185,216 




427,847 






49,360 


543,916 




294,913 






40,000 






66,580 






754,694 


815,409 


744,172 


6,131,746 


6,681,840 


5,601,694 


6,131.746 


12,813,586 


18,415,280 
37.360,612 


6.30% 


6.50% 


5 19% 



Memo to Finance and Labor Committee 

June 14, 2000 Finance and Labor Committee Meeting 

Item 12 - File 00-1058 



Department: 
Item: 



Public Library 

Resolution determining and declaring that the 

public interest and necessity demand municipal 

improvements consisting of the acquisition, 

rehabilitation, renovation, improvement, 

construction or reconstruction by the City and 

County of San Francisco of Library Facilities and 

Properties other than the Main Library, and all 

other works, property and structures necessary or 

convenient for the foregoing purposes, that the 

estimated cost of $129,245,000 for said municipal 

improvements is and will be too great to be paid 

out of the ordinary annual income and revenue of 

said City and County and will require the incurring 

of a bonded indebtedness; finding the proposed 

project is in conformity with the priority policies of 

Planning Code Section 101.1(b) and with the 

General Plan consistency requirement of 

Administrative Code Section 2A.53. 



Description: 



The State General Obligation Bond Law requires 
that, in order for the City to issue General 
Obligation Bonds, a resolution of public interest 
and necessity must first be adopted by a two-thirds 
vote of the Board of Supervisors and the proposed 
bonds must then be approved by two-thirds of the 
electorate. If the proposed resolution (determining 
and declaring that public interest and necessity 
justify the proposed bonds) is approved by a two- 
thirds vote of the Board of Supervisors, the 
proposed General Obligation Bond measure would 
be scheduled for a vote by the San Francisco 
electorate for the General Election in November of 
2000. 

The proposed $129,245,000 General Obligation 
Bond Measure for the Public Library would be used 
for the acquisition, rehabilitation, renovation, 
improvement, construction, or reconstruction of 24 
Branch Libraries, Brooks Hall and a System-wide 
Support Center. The proposed resolution 
specifically states that this $129,245,000 cost is too 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

June 14, 2000 Finance and Labor Committee Meeting 

much to be paid from the ordinary annual income 
and revenue of the City and will require an 
expenditure greater than the amount allowed by 
the annual tax levy and would therefore require the 
incurring of the proposed bonded indebtedness for 
the $129,245,000. 

Attachment 1, prepared by Mr. George Nichols of 
the Public Library, summarizes the improvements 
and construction work to be undertaken by the 
Library 

Budget: Attachment 2 identifies a total Program Cost of 

$128,550,000, separated by Branch and specific 
improvements and construction work to be 
performed. As shown in Attachment 3. in addition 
to the estimated Project Cost of $128,550,000, the 
Public Library estimates bond underwriting, 
issuance and additional proceed costs of 
$3,095,000, for a total cost of $131,645,000. As 
shown in Attachment 3. the Public Library is 
requesting the subject $129,245,000 of General 
Obligation Bond since the Library has $2,400,000 
of Bond Proceeds remaining from its previous 
General Obligation Bonds (ESP2). 

Comments: 1. On June 9, 2000, the Capital Improvement 

Advisory Committee (CLA.C) will consider the 
proposed General Obligation Bond measure. 

2. According to Mr. Nichols, the Library 
Foundation has agreed to raise $15 million of 
private funds for furniture, fixtures and equipment 
if the proposed General Obligation Bond Measure 
is approved. 

3. According to Ms. Nadia Sesay of the Mayor's 
Office of Public Finance, assuming the bonds are 
issued in an interest rate environment that reflects 
current market conditions, the proposed bonds 
would bear an average interest cost of 
approximately 7.9 percent over the life of the 
project. Ms. Sesay reports that it is anticipated that 
there would be seven separate bond issuances over 
the course of the Public Library project for the total 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

June 14, 2000 Finance and Labor Committee Meeting 



amount of $129,245,000, between 2001 and 2008. 
Eacb of tbe bonds would bave a 20-year life. Upon 
issuance of the entire $129,245,000, the average 
annual debt service would be approximately 
$11,986,340 and the total debt service would be 
$234,632,713 over the life of the seven separate 
bond issuances, based on an estimated average 
interest rate of 7.9 percent. 

4. The City's Charter provides for a legal debt limit 
of three percent of net assessed property value. Ms. 
Sesay advises that the City's current Debt Limit 
Ratio is as follows: 

Total Debt Limit for FY 1999-2000 $2,114,446,916 
Estimated Outstanding General 

Obligation Bonds as of June 1, 2000 902.300.000 
Remaining Debt Capacity $1,212,146,916 

In addition, as shown on Attachment 4, the City 
has authorized, but not yet issued, an additional 
$1,007,990,000 of General Obligation Debt. 
However, the Mayor's Office of Finance advises 
that the amount of debt that is issued in any given 
year is both determined by the needs of the specific 
project as well as a function of the level of 
payments on existing debt, which fluctuates as 
older bond issues are retired and new bonds are 
issued. 

5. Section 3 of the proposed resolution states that 
the Board of Supervisors finds and declares that 
the proposed project is (1) in conformity with the 
priority policies of Section 101.1(b) of the City 
Planning Code and (2) in accordance with Section 
2A.53(f) of the City Administrative Code, that the 
proposed project is consistent with the City's 
General Plan and adopts the findings of the City 
Planning Department as set forth in the General 
Plan Referral Report, which is undated. The 
General Plan Referral Report was issued by the 
Department of City Planning on May 26, 2000. 
Section 3 of the proposed resolution should be 
amended to include this date of May 26, 2000 for 
the General Plan Referral Report. This report 

BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

June 14, 2000 Finance and Labor Committee Meeting 

indicates that although the proposed Public Library 
Improvement Bond Report is, on balance, in 
conformity with the General Plan, since the 
proposed Library Bond Program involves land 
acquisition, changes in land use and construction of 
new buildings, such projects will require separate 
findings of consistency with the City's General 
Plan. 

6. According to Ms. Ann Carey of the Controller's 
Office, once the $129,245,000 in General Obligation 
Public Library bonds are issued, these bonds would 
result in an increase in the Property Tax Rate of 
approximately $0.017199 per $100 of assessed 
value. At this rate, the owner of a single-family 
residence assessed at $400,000, assuming the 

000 homeowner's exemption, would pay an 
average of approximately $67.59 in additional 
annual Property Taxes. 

7. If the proposed resolution of public interest and 
necessity is approved, the Board of Supervisors 
would be required to approve a separate ordinance 
placing this General Obligation Bond Measure on 
the November, 2000 ballot. If the electorate 
approves the proposed General Obligation Bonds, 
the subsequent issuance and sale of such bonds 
would also require approval by the Board of 
Supervisors. Furthermore, expenditure of any of 
the proceeds of the proposed General Obligation 
Bonds by the Public Library would require 
appropriation approval by the Board of 
Supervisors. 

Recommendations: 1. Amend Section 3 of the proposed resolution to 

include the date of May 26, 2000 for the General 
Plan Referral Report, in accordance with Comment 
No. 5 above. 

2. Approval of the proposed resolution, as amended, 
is a policy matter for the Board of Supervisors. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 

June 14, 2000 Finance and Labor Committee Meeting 




Supervisor Yee 
Supervisor Bierman 
President Ammiano 
Clerk of the Board 
Controller 
Steve Kawa 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



SUMMARY STATEMENT Attachment 1 

BRANCH LIBRARY BOND PROGRAM Pa g e 1 of 2 



The Public Library seeks approval of a $129,245 million general obligation bond for the 
rehabilitation of nineteen (19) branch library buildings, acquisition of property and 
construction of five (5) new branch library buildings, acquisition of property and 
construction of a system-wide support center, and tenant improvements to Brooks Hall. 

The bond program would bring San Francisco's branch library system into the 21" century. 
It will provide the public with seismically safe, accessible, code compliant branch libraries in 
every neighborhood of San Francisco. This bond program would provide funds to: 

1 ) Rehabilitate and modernize nineteen aging branch library facilities ($8 1 ,680,000). 
Included among this work are: 

a) Seismic retrofit of fifteen ( 1 5) branch facilities that have a seismic hazard rating 
(SHR) of 3 or 4. Three of the fifteen branch libraries have a SHR of 4. 

b) Improving disabled access - making facilities compliant with the Americans with 
Disabilities Act (ADA). 

c) Hazardous materials mitigation. 

d) Modernizing and upgrading building systems - telecommunications, HVAC, 
electrical, and plumbing. 

e) Reconfiguring floor space and in some cases expanding space to facilitate public 
programs and services; or to make up for space that is lost to bring a building into 
conformance with ADA. 

Bringing facilities up to current building codes. 

2) Acquiring land and constructing buildings for four (4) branch libraries currently housed 
in leased facilities ($20,160,000). 

3) Acquiring land and constructing a new branch library to serve the Mission Bay 
neighborhood ($6,880,000). 

4) Constructing a system-wide support center. The center would house non-public service 
functions primarily materials processing for the library system and free up space in the 
Main Library for public use and the materials collection ($14,830,000). 

5) Rehabilitating Brooks Hall for use by the Library ($5,000,000). 

This bond program seeks to improve the safety, accessibility and functionality of these 
buildings. The branch library system serves every neighborhood and community in the City 
and County of San Francisco. The Library's programs and services are among the most 
popular services offered by the City. Branch libraries fulfill the communities' need and 
desire for access to information and resources for educational, occupational, or recreational 
purposes. With the advent of the digital age it has become vitally important that the library 
system provide buildings that can facilitate access to the internet and to other electronic 
resources and promote learning and the development of skills needed to function in an 
increasingly technological world. This is especially critical in under-served neighborhoods 
that have limited access to technology. For these communities, this bond program would 
help bridge the digital divide that currently exists. 



SUMMARY STATEMENT Attachment ] 



BRANCH LIBRARY BOND PROGRAM 



Page 2 of 2 



The specific benefits or objectives of this bond program are to: 

■ Increase public safety by seismically strengthening buildings and mitigating hazardous 
materials that exist in many of these facilities. 

■ Increase accessibility by making every branch compliant with the requirements of the 
Americans with Disabilities Act (ADA). Most of these facilities are not fully accessible, 
do not have accessible restrooms or other amenities, and do not provide access to 
materials or services in facilities that have multiple floors. 

■ Improve infrastructure by upgrading buildings to current code requirements and 
modernizing and updating building systems such as telecommunications, HVAC, 
electrical, and plumbing. These improvements are needed to extend the useful life of 
buildings that range in age from 33 years to 86 years old. 

■ Improve public service by reconfiguring floor plans and interior spaces for greater 
flexibility, providing access to the Internet and other digital resources, and expanding 
public areas for materials collections, reading, computers, and other programming. 

PROGRAM COSTS 

Cost estimates for each project contained in the bond program were developed by the Bureau 
of Architecture, Department of Public Works. Costs for each project are escalated using the 
year 2000 as the base, at an annual rate of 4.5% annually through the mid-point of 
construction which ranges from 2003 to 2009. Project costs include construction, project 
control, site control, and temporary relocation impacts resulting from construction. In total, 
these costs amount to $128.55 million. Bond issuance and related fees estimated by the 
Office of Public Finance at $3,095 million, would have to be added to the bond program prior 
to determining the final bond issue amount. As estimated, this program would cost a total 
$131,645 million. This amount however, is offset by $2.4 million available from ESP2 bond 
proceeds resulting in an estimated bond issuance of $129,245 million. 

SUMMARY 

In summary, this program would bring library facilities and services into the 21 st century. 
This would be accomplished by rehabilitating, modernizing, and expanding buildings that do 
not meet existing and growing service demands; by constructing new buildings to replace 
branch libraries housed in leased facilities; by building a new library in the emerging 
neighborhood of Mission Bay; and by constructing a system-wide support center and 
improvements to Brooks Hall. It is the goal of this program to facilitate the delivery of 
essential public programs and services in buildings that are seismically safe, functional, 
accessible, and code compliant. A more detailed description of this program is included in 
the report titled "Branch Library Improvement Program" prepared for the Library by the 
Department of Public Works. 



ATTACHMENT B-2 
Question IV B. 



Attachment 2 



BOM) PROGRAM COSTS fin Dollar;) 



Brioches 


Rehabilitation 

and 
Improvements 


Expansion 


Site Acquisition 


New Buildiot; 


Totals 


Ann 


4.160.000 


880.000 




. 


S5. 040. 000 


Bayriew 


3.480.000 


810.000 


. 


. 


S4.290.000 


1 Bernal Heights 


5.020.000 


490.000 


. 


. 


S5.510.00O 


Eureka 


4.050.000 


820.000 




. 


S4.870.0OO 


Excelsior 


4.930.000 


- 


. 


. 


$4,930,000 


Glen Park 


- 




1.790.000 


2.990.000 


S4.780.000 


Golden Gale 


4.940.000 


730.000 


. 


. 


S5. 670.000 


lnt;leside 


. 


- 


1.790.000 


3.120.000 


S4.91 0.000 


Marina 


3.790.000 


890.000 




. 


S4. 680.000 


Merced 


3.590.000 


880.000 


. 


. 


S4.470.000 


Mission Bay 






3.280.000 


3.6O0.0O0 


S6. 880.000 


Noe Valley 


4 230.000 


660.000 






$4,390,000 


North Beach 


3.190.000 


500.000 


. 


. 


S3. 690.000 


Ortega 


3.300.000 


760.000 






$4,060,000 


Park 


1.410.000 


. 


. 


. 


S1. 410.000 


Parkside 


3.080.000 








$3,080,000 


Portola 


. 


. 


1.790.000 


3.120.000 


$4,910,000 


Potrero 


4.050.000 


740.000 


. 


. 


$4,790,000 


Presidio 


1.640.000 








$1. 640.000 


Richmond 


6.090.000 


2.620.000 






S8. 710.000 


Sunset 


1.610.000 




. 


. 


$1, 610, 000 


Visitation Valley 


. 




2.110.000 


3.450.000 


S5.560.00O 


Wesl Portal 


4.310.000 


370.000 


. 




$4,680,000 


Western Addition 


3.660.000 








S3.660.000 


System-wide Support 
Center 


- 


- 


5.250.000 


9.580.000 


S14.830.000 


Brooks Hall 


5.000.000 






. 


$5,000,000 | 


Total Program 


$75,530,000 


S11.150.000 


S16.010.00O 


S25.86O.0OO 


$128,550,000 i 



Attachment 3 



\ 



ATTACHMENT A 

Question IV A. 

Sources and Uses of Project Funds 



Sources of Project Funds 


L 1 


Cash from reserves, dedicated funds, etc. 




Federal, State monies/Grants/Programs 


Public Contributions 




Bond proceeds - ESP2 


$2,400,000 


Bond proceeds - Branch Library Improvement 


$129,245,000 


Total Sources 


$131,645,000 






Uses of Project Funds 




Project Costs 


$128,550,000 


Financing Costs 




Reserve Fund 




Underwriters Discount 


$969338 


Costs of Issuance 


$2,100,000 


Additional Proceeds 


$25,662 


Total Uses of Project Funds 


$131,645,000 



JUN. -08'00tTHU) 14.24 CCSF PUBLIC FINANCE 



TEL: 415 554 4864 



Attachm ent I- 

nnn 



TABLE A-11 



CITY AND COUNTY OF SAN FRANCISCO 
Genera] Obligation Bonds (as of 6/1/00) 



pgggiwi iQmi fP*t gf AtftfivnaiiM) 



SlTlO 



b—cd 
20.000000 

in 000 .000 



2.40O000 
2JJO0.0O0 



1(11/4,16) 



13OOC.0O0 



6*0.000 



hofeyl 



i(ll/V/I7) 



I991A 
I99JB 



10.S0O000 
6.100.000 



419,000 
1.41OD00 



KMieltatMiFMliiM] 



trMfcF«cflju»fta»t)(ll/l/rr) 



i(lWTT) 



flitiilili IMMll 



,(tn/U) 



iQwrny 



ratlin tfj I 



i(U™t9) 



INdritcStfc-yl 



i(«WM) 



307.000 



53.000000 



Z44UJ0OO 



1*V2D 



K.5O0JJO0 



6,WO000 



I992A 

1993A 
I994A 
IMS 



6.100000 

l-'J0O000 
3.433.000 
7.643.000 



1.410.000 
1X410000 



IWIA 

I99IF 
I9WC 
I993B 

irwB 

IW3A 



jxoooooo 

26.3OO000 
3t.I60.00C 



IjOOUMO 
2JIOO0O 



lUOOOOC 
It. 4 to 000 



32JOSJJC0 

3.I43.0OQ 
17.133jOOO 



fnitwh>wrm«l(ll«V»3) 



1991C 



I6J0O0O0 



14O000 



i(WW) 



SUBTOTALS 



I993C 
1MB 
I997A 



1133.000 
J* .000000 
23. 103 .000 



6.423.000 
24.133.000 

rusoooo 



1 7.060.000 



r— n i| — i h INMb *»>■* p i/vn) 


1993D 
19940 


16.4IO0OO 

10.105.000 

I4.2I3.0O0 


12J*O000 
1.753jOOO 

6.130000 


- 


Uv ftafaqr Lm *•#•■ (1 lO*») 


I994A 


33.0OO0OO 


30 .160.000 


313.000 .000 


* * i Mia P—hi !■> i (6-7^4) 


I994C 

HBO 

I997B 


M> 30.000 

OJBMM 

2ZO3O0OO 


3J3O0OO 
IU13.000 

2O6I3.D00 


- 


AamAnlhmmmP*jmt(li/VM) 


1996E 
1999D 


23.000000 
1 6.730 JMO 


10,T7O0O0 
16.730 .000 


t 


C»y HaU la-rn ii in (| ]/Ml) 


1994A 


63_39O0O0 


33.233.000 


■ 


SbHabvt Aquanun hr^irawiaca (1 1 X<93) 




- 


. 


2SU43.0OC 


Aflbfdabte Howa* Boa* (1 1/V96) 


I99IA 
1999 A 


20MOD00 
70.000000 


19.305.000 
20.000.000 


60000000 


C*y C-tip and School Boo* (673/97) 


1999 A 
I999B 


2QJ93.0OO 
60J2O.OOO 


20393,000 
60320.000 


29.a03.flOO p 
2"9.4<OOOC 


Zo» Bond. Mm 


1999C 


It t4«. 000 


16JU5O0C 


3U33.00D p 


Li»— . Hand* HooomI (1 1/2/99) 




- 


. 


299O0O000 


fcomtwn nd Put* (3/7. 00) 




• 


• 


110,000.000 p 


CaUtami. Aodogy VSomi (3/7AM) 




• 


• 


17.443.000 



i Stria 1 991-1 i 



S 962.960,000 S 467.750,000 

A41.CtS.000 434JJO0OO 



S 1,007,990,000 



TOTALS 



i «w*uv»d FEMA and Sunc putt loufinf J 122.4*0000 u 
adt off n-W bcKUadn' 



S 1.40,045,000 S 90X300,000 S 1.007.99B.BOO 

prowkd is the band tiafaaimtan. 



A- 19 




[All Committees] 

Citv and County of San Francisco Government Document Section 
- T .. -,."' Main Library 

Meeting Minutes ' 

t Finance and Labor Committee 

Members: Supervisors Leland Yee, Sue Merman, Tom Ammiano 

Clerk: Mary Red 

Tuesday, June 20, 2000 1 :00 PM City Hall, Room 263 

Departmental Budget Hearings 

Members Present: Leland Y. Yee, Sue Bierman, Tom Ammiano. 



Meeting Convened 

The meeting convened at 1:12 p.m. 

000982 [Budget Hearing and Review, FY 2000-2001] 

Hearing to consider the Annual Budget for General Administration and Finance: Public Protection. 

(General Administration and Finance: Administrative Services; Assessor/Recorder; Board of Supervisors; City 
Attorney; Controller; City Planning; Civil Service Commission; Ethics Commission: Human Resources; 
Mayor; Elections; Retirement System; Treasurer/Tax Collector; General City Responsibility.) 

(Public Protection: Adult Probation; Consumer Assurance, Regulatory Compliance and Agricultural 
Standards; Animal Care and Control; Medical Examiner; Trial Courts; District Attorney; Fire Department; 
Juvenile Probation; Public Defender; Police; Sheriff; Companion to File 000979.) 
6/5/00, RECEIVED AND ASSIGNED to Finance and Labor Committee. Scheduled for consideration on June 20, 2000. 
Heard in Committee. Speakers: Supervisor Yee: Harvey Rose, Budget Analyst: Steve Kawa. Mayor's Budget 
Office; Supervisor Ammiano; Ed Harrington, Controller; Ryan Brooks, Director, Administrative Services; Bill 
Lee, City Administrator; Debra Newman, Budget Analyst's Office; Supervisor Bierman; Doris Ward, 
Assessor/Recorder; Ken Bruce, Budget Analyst's Office; Goloria Young, Clerk of the Board; Louise Renne. 
City Attorney; Kim Manolius, Deputy City Attorney; Gerald Green, Director, City Planning; Kate Lavetti, 
Executive Director, Civil Service Commission; Ginny Vida, Executive Director. Ethics Commission; Andrea 
Gourdine, Director, Human Resources; John Holtzman. Deputy City Attorney; Patty Fado. Director of 
Elections; Claire Murphy. Executive Director, Retirement System; Susan Leal. Treasurer/Tax Collector; 
Armando Cervantes, Chief Probation Officer. Adult Probation; David Frieders. Director. Department of 
Consumer Assurance; Carl Friedman, Director, Animal Care and Control; Dr. Boyd Stephens, Medical 
Examiner/Coroner; Gordon Park-Li, Assistant CEO. Superior Court; Alfred Chiantelli, Presiding Judge, 
Superior Court; Terence Hallinan, District Attorney; Fred Brousseau. Budget Analyst's Office: Robert 
Demmons, Chief, Fire Department; Jessie Williams, Chief Probation Officer. Juvenile Probation -YGC; Jeff 
Brown, Public Defender; Earl Sanders, Acting Chief of Police; Michael Hennessey, Sheriff. Supervisor 
Bierman absent for vote. Continued to June 27, 2000. 
CONTINUED by the following vote: nnPUMEN T S DEPT 

Ayes: 2 - Yee, Ammiano U^UUivii_i n . ^ 

Absent: 1 - Bierman 

JUN 2 7 2CC3 

ADJOURNMENT SAN FRANCISCC 

PUBLIC LIBRAm 

The meeting adjourned at 6:00 p.m. 

City and County of San Francisco I Primed at 5:40 P.\f on a?! N 




).X64 

CITY AND COUNTY Ix^Ij g$IJi/ OF p AN FRANCISCO 

'i/ 00 .BOARD OF SUPERVISORS 

BUDGET ANALYST 

1390 Market Street, Suite 1025, San Francisco, CA 94102 (415) 554-7642 
FAX (415) 252-0461 



DOCUMENTS DEPT. 



June 19, 2000 JUN 2 2 



SAN FRANCISCO 
PUBLIC LIBRARY 



TO: ^Finance and Labor Committee 

FROM: ^Budget Analyst 

SUBJECT: Mayor's Recommended FY 2000-2001 Budget 



The Budget Analyst has conducted a detailed review of the Mayor's 
recommended FY 2000-2001 budget and has prepared reports and 
recommendations to reduce the Mayor's recommended budget. Our reports (a) 
describe the service impacts resulting from the Mayor's recommended budget when 
services are affected (b) contain recommendations to reduce various budgeted items 
and (c) contain recommendations to reserve various budgeted items only if 
insufficient data has been submitted to support the budget requests. The 
recommendations of the Budget Analyst to reduce the Major's budget, to be 
considered by the Finance and Labor Committee over the next two weeks, would 
not result in any existing service level reductions. 

SUMMARY OF CHANGES IN EXPENDITURES AND POSITIONS 

The Mayor's recommended FY 2000-2001 budget of $4,442,032,235 is 
$229,129,099 or approximately 5.4 percent more than the FY 1999-2000 budget of 
$4,212,903,136 as finally approved in the FY 1999-2000 Annual Appropriation 
Ordinance. 

The Mayor's recommended FY" 2000-2001 total General Fund budget, 
including General Fund Department expenditures and General Fund contributions 
to General Fund Supported Departments, of $2,161,565,650 is $183,675,982 more 
than the FY 1999-2000 General Fund budget of $1,977,889,668, an increase of 
approximately 9.3 percent. 



Memo to Finance and Labor Committee 
June 19, 2000 



The table below provides comparative expenditure data for the total City 
budget between the original FY 1999-2000 budget and the Mayor's Recommended 
2000-2001 budget. 

Total City Budget Comparison of Expenditures and Other uses 

















Percent 














Increase 


Increase 












(Decrease) from 


(Decrease) 




FY 1^99-2000 


FY 1999-2000 




FY 2000-2001 


FY 1999-2000 


from 


Uses of Funds 


Original 


Revised 




Proposed 




Original 


Original 


Regular F.xpcnditurcs: 
















Gross Expenditures 


S 4.364.822,006 


$ 4,405,767,660 


S 


4 649,964.730 


S 


285.142.-24 


6 5% 


Less Interdepartmental Recoveries 
Net Regular Expenditures 


(515621 7961 
200,210 


.148 221 601) 
S 3.857,546.057 


s 


(586. 172.0851 
4,063,792,645 




.70.550.289) 


13.7% 
5.6% 


S 


214,592,435 


Capital/Facilities Maintenance 


305,545,681 


304,460.591 




288.454,000 




(17,091,681) 


-5.6% 


Total Reserves 


26,469,223 


17,954,790 




51,835.106 




25,365,883 


95.8% 


Available Surplus Funds 
Total Uses of Funds 


31.688.022 


30.045.377 




37.950,484 




6.262.462 


19.8% 
- 4 


S 4.212,903.136 


S 4.210.006.815 


s 


4.442.032.235 


1 


229,129,099 



The Mayor's recommended Pi" 2000-2001 budget includes 27,985 funded full 
time equivalent positions or 638 more positions than the 27,347 funded positions 
shown in the original Pi' 1999-2000 budget approved by the Mayor and the Board of 
Supervisors. The 27,985 positions in the Mayor's recommended Pi' 2000-2001 
budget is 610 positions more than the 27,375 positions in the revised Pi' 1999-2000 
budget, after adjusting for supplemental appropriations approved subsequent to the 
approval of the FY 1999-2000 budget. 

A net total of 387 or 60.7 percent of the 638 total new full time equivalent 
positions are funded from General Fund and General Fund-Supported departments. 



BOARD OF SUPERVISORS 

BUDGET ANALYST 

2 



Memo to Finance and Labor Committee 
June 19, 2000 



General Fund Expenditures and Reserves 

The table below provides comparative data, for General Fund Expenditures, 
Contributions to General Fund Supported Departments and Reserves, between the 
original FY 1999-2000 budget and the Mayor's Recommended 2000-2001 budget. 

General Fund 
Comparison of Expenditures and Other Uses 













Increase 


Percent 










(Decrease) from 


Increase 




FY 1999-2000 


FY 1999-2000 


FY 2000-2001 


FY 1999-2000 


(Decrease) 


Uses of Funds 


Original 


Revised 


Proposed 


Original 


from Original 



Re gular Expenditures: 

Gross Expenditures S 1,882,436,544 $ 1,909,950,106 S 2,019,453,450 S 137,016,906 

Less Interdepartmental Recoveries (173.789.845) (186.890.067) ('200.320.166) (26.530.321) 

Net Regular Expenditures S 1,708,646,699 $ 1,723,060,039 S 1,819,133,284 S 110,486,585 



Capital/Facilities Maintenance 22,019,1 10 
Contribution Transfers to General Fund 

Supported Departments 192,254,636 

Reserves 26,469,223 

General Fund Reserve 28.500.000 

Total Uses of Funds 



20,523,177 



24,756,379 2,737,269 



198,436,492 237,316,331 45,061,695 

17,954,790 50,359,656 23,890,433 



24910.322 



30.000.000 



.500.000 



$ 1,977,889,668 S 1,984,884,820 S 2,161,565,650 S 183,675,982 



7.3% 

15.3% 
6.5% 

12.4% 

23.4% 
90.3% 



5.3% 
9.3% 



As can be seen from the table above, total General Fund expenditures, 
including Contribution Transfers to General Fund Supported Departments, has 
increased by $183,675,982 or 9.3 percent. The largest percentage increases in 
General Fund expenditures are for reserves, including the Salary and Benefits 
Reserve discussed later in this report, and Contribution Transfers to General Fund 
Supported Departments, which increased by $45,061,695 or 23.4 percent. Such 
Contribution Transfers are used to subsidize, primarily, the Public Transportation 
Commission (Muni), San Francisco General Hospital (SFGH) and Laguna Honda 
Hospital (LHH). 

The table on the following page provides an itemization of General Fund 
supported Departments. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 
June 19, 2000 



General Fund Supported Departments 
Expenditure Comparisons 













Percent 


General Fund Supported Departments 


"(-2000 


I > 1999-2000 


FY 2000-2001 


Increase (Decrease) 
from FY 1999- 


Increase 
(Decrease) 




Original 


Reused 


Proposed 


2000 Original 


• . ... i ) riginal 


Commission on Aging 


$ 1,597,632 


S 1.597,632 


$ 


$ (1,597.632) 


-100.0% 


San Francisco General Hospital 


36,654,092 


36,654,092 


73,913,696 


37,259,604 


101.7% 


Laguna Honda Hospital 


32,380.038 


32,380,038 


29,979,454 


(2,400,584) 


-7.4% 


Public Library 


26.270,161 


26,270,161 


27.418,587 


1.148,426 


4.4% 


Parking and Traffic Commission 












- Offstreet Parking 


1,321,501 


1.321.5(11 


624,168 


(697,333) 


-52.8% 


- Road Fund 


6,194,562 


6,194,562 


4,152,535 


(2,042,027) 


-33.0% 


Municipal Railway 


84,433,308 


90,565,164 


97,321,671 


12,888,363 


15.3% 


DPW - Gas Tax Fund 


3.403.342 


3.403.342 


3.906.220 


502878 


14.8% 


Totals 


$ 192.254,636 


S 198,386,492 


$ 237,316,331 


$ 45,061,695 


23.4% 



The Commission on Aging special fund expenditures previously supported by 
the General Fund are now included in the General Fund budget as part of new the 
Aging and Adult Services Department. 

As can be seen in the table above, the General Fund subsidy of San Francisco 
General Hospital (SFGH) has more than doubled from the original FY 1999-2000 
budget. The SFGH required a supplemental appropriation of $9,940,757 in FY 
1999-2000 (File 00-0779, finally approved by the Board of Supervisors on June 12, 
2000. The need for this supplemental appropriation was a combination of an overall 
Department of Public Health (DPH) revenue deficit of $12,772,694, due largely to a 
$10,000,000 reduction in SB 855 Medi-CAL disproportionate share revenue, offset 
by net DPH expenditure savings of $2,831,937. The FY' 2000-2001 SFGH budget 
has reduced the budgeted revenue for SB 855 Medi-CAL funds by $10,000,000 
consistent with the revenue shortfall in the current, 1999-2000 Fiscal Year. 

The Public Library General Fund subsidy shown in the table above is 
dictated by Charter Section 16.109 which requires that Property Tax revenue equal 
to $0,025 per one hundred dollars of total assessed valuation be set aside for the 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

4 



Memo to Finance and Labor Committee 
June 19, 2000 



Library Preservation Fund. However, the amount shown in the table above for the 
General Fund contribution to the Public Library exceeds the amount of the Charter 
required General Fund subsidy for FY 2000-2001 by $598,575, according to the 
Controller. Therefore, any reductions made to the Public Library budget, up to the 
amount of $598,575 would represent a General Fund savings. 

The Municipal Railway General Fund subsidy was to remain unchanged from 
the base amount of General Fund support in FY 1999-2000 in accordance with the 
requirements of Proposition E which amended the Charter in November of 1999. 
The base amount was to include the cost to City General Fund Departments that 
provide services to the Municipal Railway. Therefore, the base amount for FY 1999- 
2000 includes the $90,565,164 revised General Fund subsidy shown in the table 
above (which included the original General Fund subsidy of $84,433,308 plus 
$6,131,856 transferred from the General Fund Salary and Benefits reserve to the 
Municipal Railway following approval of collective bargaining agreements for Muni 
employees). In addition the cost of services provided to the Muni by General Fund 
Departments are now budgeted directly in Muni. The table below, prepared by the 
Controller's Office shows the recalculation of the Muni's FY 2000-01 baseline 
General Fund support. 

Reconciliation of Municipal Railway Baseline Calculation 

Item Amount 

FY 1999-00 General Fund Support as shown in the Final 1999- $84,433,308 

00 Annual Appropriation Ordinance 

Muni Operator Salary increases from the 1999-00 Salary and 6,131,856 

Benefits reserve 

FY 1999-00 fringe adjustment for cost of Health coverage 2,528,024 

Adjustment for 50 percent of new Parking fine revenue (1,000,000) 

allocated to the General Fund 

Services of City Attorney claims unit 4,935,884 

Services of Department Human Resources Employee Relations 292,599 
Division 

FY 2000-2001 General Fund Support (per Interim Annual $97,321,671 

Appropriation Ordinance) 

Article VIIIA - Sec. 8A.105 of the Charter, regarding the Municipal 
Transportation Fund states that, as long as the Municipal Railway's General Fund 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

5 



Memo to Finance and Labor Committee 
June 19, 2000 



subsidy does not exceed the baseline amount, the Board of Supervisors may allow 
the Muni's base budget to take effect without any action on the part of the Board of 
Supervisors, or it may reject but not modify the Agency's base budget by a two- 
thirds' vote. Therefore, because the Muni's base budget does not exceed the 
adjusted baseline amount as calculated by the Controller, the Board of Supervisors 
can only approve, adopt without any action, or reject the Muni proposed budget for 
FY 2000-2001. 

Reserves 

The Mayor's recommended FY 2000-2001 budget contains an undesignated 
General Fund Reserve of $30,000,000 which is $1,500,000 more than the General 
Fund Reserve of $28,500,000 as finally approved in the FY 1999-2000 Annual 
Appropriation Ordinance. 

In addition, the City has an Emergency Reserve Fund balance of $4,198,046 
carried forward from FY 1999-2000 into FY 2000-2001. 

Designated Reserves 

In addition to the undesignated General Fund Reserve of $30,000,000, the 
Mayor's Recommended FY 2000-2001 budget contains five designated General Fund 
Reserves as follows: 

Audit/Year-End Closing Adjustments $4,500,000 

Human Rights Commission Task Force Recommendations 1.000,000 

Systems Infrastructure Reserve 1,000,000 

Litigation Reserve 9,000,000 

Salary and Benefits 34.859.656 

Total Designated Reserves $50,359,656 

The Litigation Reserve is established even' year to set aside funds for 
lawsuits and related expenses anticipated by the City Attorney for the 2000-2001 
Fiscal Year. The Salary and Benefits Reserve is calculated by the Controller and 
the Mayor's Office to provide funding for pending labor agreements that have not 
yet been approved by the Board of Supervisors. The Year-End Closing Audit 
Adjustments Reserve is established to provide funds for necessary expenditure 
adjustments that are required during the closeout of the 1999-2000 Fiscal Year and 
preparation of the Consolidated Annual Financial Report. 

With the exception of the Audit/Year-End Closing Adjustments reserve and 
the Salary and Benefits reserve, reserves shown in the table above will require a 

BOARD OF SUPERVISORS 

BUDGET ANALYST 

6 



Memo to Finance and Labor Committee 
June 19, 2000 



supplemental appropriation, approved by both the Mayor and the Board of 
Supervisors prior to release of such reserves for expenditure. 



Controller's Reserves 

The Controller has established total reserves for expenditures included in 
departmental budgets in the amount of $2,861,019 for various expenditures as 
described below: 

Adult Probation Department - reserve pending 

Receipt of Grant Funds $961,019 

San Francisco General Hospital - reserve for Acute 

Care Psychiatry and Department of Public Health 

- expenditures for Alternatives to Hospitalization 1,900,000 

Total Controller's Reserve $2,861,019 

The San Francisco General Hospital (SFGH) Acute Psychiatry and 
Department of Public Health expenditures for alternative to hospitalization both 
relate to a budget initiative to retain 22 psychiatric inpatient beds at SFGH and 
developing alternatives to hospitalization in the Department of Public Health 
(DPH) budget for psychiatric patients. The Controller has reserved approximately 
eight months of expenditures during FY 2000-2001 to evaluate the success of the 
new approach to psychiatric inpatient care. The Budget Analyst will recommend, in 
our budget report on DPH, that the Finance and Labor Committee also place these 
funds on reserve so that the DPH can report to the Finance and Labor Committee 
on the program prior to continuing funding for the remainder of FY 2000-2001. 



SOURCES OF FUNDS: REVENUES AND CONTRIBUTION 
TRANSFERS 

FY 1999-2000 General Fund Year End Surplus 



The March 3, 2000 Joint Report prepared by the Mayor's Director of Finance, 
the Controller and the Budget Analyst projected a General Fund revenue shortfall 
$24,400,000 for Fiscal Year 2000-2001. At that time, the Controller had estimated 
that the FY 1999-2000 General Fund year end surplus, which would be available as 
a source of funds for the Fiscal Year 2000-2001 budget, would amount to 
$90,200,000. Subsequently, on May, 5 2000, the Controller issued his Nine-Month 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

7 



Memo to Finance and Labor Committee 
June 19, 2000 



Budget Status report which included a $113,700,000 estimate of the FY 1999-2000 
General Fund year end surplus. 

The Mayor's Recommended 2000-2001 budget includes General Fund prior 
year surplus funds in the amount of $116,100,000, or $2,400,000 over the 
Controller's May 5, 2000 estimate for the FY 1999-2000 surplus, and an increase of 
$9,280,000 over the $106,820,000 FY 1999-2000 estimated surplus which was used 
as a source of funds for the original FY 1999-2000 budget. According to the 
Controller, the increase in the General Fund prior year surplus funds of $2,400,000 
over the Controller's May 5, 2000 estimate is the result of an increased allocation of 
State Health Realignment funds for Fiscal Year 1999-2000. 

Reg ular Revenues 

The Budget Analyst has reviewed the major budgeted General Fund 
revenues in the Mayor's Recommended FY 2000-2001 budget and found that such 
major revenues reflect the Controller's Nine-Month Budget Status report adjusted 
for revenue growth rates that are consistent with the assumptions utilized in the 
March 3, 2000 Joint Report prepared by the Mayor's Director of Finance, the 
Controller and the Budget Analyst. 

Contribution Transfers to the General Fund from the Airport Annual Serx'ice Payment and 
Hetch Hetchy Surplus Revenues 



The table below summarizes the Contribution Transfers to the General Fund. 



Contribution Transfer 

Airport Annual Service 

Payment 
Hetch Hetchy Surplus 

Revenue Transfer 

Totals 



FY 2000-2001 
FY 1999-2000 Recommended Increase 
Original Budget Budget (Decrease) 



$24,000,000 $28,327,877 $4,327,877 

39.850.000 29.850.000 (10.000.000) 

$63,850,000 $58,177,877 $(5,672,123) 



The increased contribution transfer from the Airport reflects continued 
growth in Airport concession revenues in FY 2000-2001. In September of 2000, the 
Airport will begin operation of the new International Terminal. New concession 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



Memo to Finance and Labor Committee 
June 19, 2000 



revenue resulting from the opening of the International Terminal are included in 
the Mayor's Recommended Airport Contribution Transfer of $28,327,877. 

The March 3, 2000 Joint Report estimated that the General Fund 
Contribution Transfer from Hetch Hetchy Surplus Revenues would be reduced by 
$6.35 million, from $39.95 million in FY 1999-2000 to $33.6 million in FY 2000- 
2001. However, Hetch Hetchy revenue decreases resulting from the deregulation 
and increased capital spending requirements have, according to the Mayor's 
proposed budget, further decreased the available Hetch Hetchy Contribution 
Transfer to $29,850,000. 



UNDERFUNDED ITEMS 

In past Fiscal Years, the Budget Analyst has reported to the Board of 
Supervisors that certain General Fund expenditures in the Mayor's recommended 
budget have been significantly underbudgeted. Typically, such items include Police 
Overtime and Workers Compensation. In FY 1999-2000, the Police Department has 
exceeded its overtime budget by an estimated $3,900,000 according to the latest 
expenditure projections. This overexpenditure has been offset by Uniform salary 
savings and savings from other non-salary fringe benefit accounts. For the FY 2000- 
2001 budget, the Mayor has recommended an increase in the General Fund Police 
Overtime budget of $1,650,000. Based on current year spending therefore, Police 
Overtime may be underbudgeted by $2,250,000. 

The Controller's Nine-Month budget status report estimated a General Fund 
deficit in Workers Compensation amounting to approximately $3,200,000 for FY 
1999-2000. The Budget Analyst has reviewed the Mayor's Recommended FY 2000- 
2001 budget for the adequacy of Workers Compensation budgeted expenditures. We 
have found that the Mayor's Recommended budget has increased budgeted 
expenditures for Workers Compensation in General Fund and General Fund 
supported departments to levels that approximate current year spending levels. 
However, the Budget Analyst notes that amounts for Workers Compensation 
expenditures in the Mayor's Recommended Budget do not allow for growth in 
spending over the current 1999-2000 Fiscal Year. According to Mr. Steve Kawa, 
Mayor's Director of Finance, the Mayor's proposed budget provides adequate 
funding for Workers Compensation after adjustments for certain high cost cases 
that have contributed heavily to Workers Compensation expenditures in FY 1998- 
99 and FY 1999-2000. Also, the Workers Compensation Council's recommendations 
will be addressed during FY 2000-2001 which will provide additional improvements 
in Workers Compensation management practices. 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

9 



Memo to Finance and Labor Committee 
June 19, 2000 



equipment purchase in lieu of lease financing - 
General Fund Departments 

The Mayor's proposed FY 2000-2001 budget includes substantial increases in 
outright equipment purchases rather than using lease financing for purchase of 
equipment. The table below provides a comparison between the FY 1999-2000 and 
FY 2000-2001 budget for such equipment purchases for General Fund and General 
Fund supported departments. 



General Fund 


and General Fund Supported Departments Equipment Purchase 






Percent 






Increase Increase 






FY 1999-2000 FY 1999-2000 FY 2000-2001 (Decrease) from (Decrease) 






Original Revised Proposed FY 1999-2000 from 






Original Original 



General Fund Departments 

San Francisco General Hospital 

Laguna Honda Hospital 

Public Library 

Parking and Traffic Commission 
- Offstreet Parking 

DPW - Gas Tax Fund 
Totals 



$3,372,372 53.581,893 515.587,698 SI 2,2 15.326 362.2% 

275.190 275,190 2,669.169 '3.979 869.9% 

150,500 79,394 248,810 98,310 65.3% 

308 487,448 710,000 181,692 34.4% 



47.500 



"4 -"n 



47,500 



M 500 



n/a 



n a 



$4,326,370 S4.423.P25 $19,357,677 515,031,307 347.4% 



As shown above, the proposed General Fund equipment purchase budget for 
FY 2000-2001 of $19,357,677 is $15,031,307 or 347.4 percent greater than the 
original FY 1999-2000 equipment purchase budget of $4,326,370 

The advantage of making equipment purchases outright, instead of lease 
financing such purchases, is that substantial savings can be realized in interest 
payments over subsequent fiscal years. According to the Mayor's Office of Public 
Finance, the maximum General Fund equipment lease financing authorization for 
FY 2000-2001 is sufficient to lease purchase $9,200,000. Therefore, if the City were 
to lease finance such equipment in FY 2000-2001, the General Fund appropriation 
for such equipment purchases could be reduced by $9,000,000 (the $9,200,000 value 

BOARD OF SUPERVISORS 
BUDGET ANALYST 

10 



Memo to Finance and Labor Committee 
June 19, 2000 

of equipment that could be lease purchased less approximately $200,000 for the 
initial payment in the first year). 

However, if the City were to lease finance $9,200,000 in equipment for FY 
2000-2001, total debt service for the equipment lease financing would amount to 
approximately $13,165,000 over the next five years. The increased cost due to 
interest payments over five-years of lease financing $9,200,000 in equipment would 
be $3,965,000, or 43.1 percent of the value of the equipment actually purchased. 
Clearly, therefore, the City will realize substantial savings over the next five years 
by purchasing equipment outright instead of by using available lease financing 
capacity. 

DEPARTMENT BUDGETS NOT SUBJECT TO AMENDMENT BY 

THE BOARD OF SUPERVISORS 

Besides the Municipal Railway budget discussed above, two new departments 
have been created for FY 2000-2001 which, according to State law, are not subject 
to amendment by the Board of Supervisors. The two new City Department's are the 
Children and Families Commission, funded by new tobacco tax funds transferred 
from the State, and the Department of Child Support Services, formerly a division 
within the District Attorney's office. Because the Municipal Railway as well as 
these two department budgets are not subject to amendment by the Board of 
Supervisors, the Budget Analyst will not be issuing reports and recommendations 
on these three proposed budgets for FY 2000-2001. 

Budget Analyst Recommendations 

Over the next two weeks, the Budget Analyst will be presenting 
recommendations to reduce expenditures in the Mayor's recommended FY 2000- 
2001 budget without reducing services below current levels. For example, the 
Budget Analyst has found that many City Departments are now requesting upward 
substitutions of new positions for existing positions, resulting in increased salary 
and fringe benefit costs. Based on the fact that such substitutions were made during 
previous years without budgetary approval by the Board of Supervisors, the Budget 
Analyst will recommend, where appropriate, increased attrition savings to enable 
the Department to continue to maintain the existing filled positions, at the higher 
salary and fringe benefit cost, but eliminate increased expenditures as a result of 
such a substitution of positions. 

Significant recommendations will be presented for the following City 
Departmental budgets to be considered by the Finance and Labor Committee at its 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

11 



Memo to Finance and Labor Committee 
June 19, 2000 



meeting of June 20, 2000, with various other recommended reductions to be 
reported subsequent to the issuance of this report: 

Budget Analyst's Recommended 
Department Expenditure Reductions 

Administrative Services $956,796 

City Attorney 513,751 

Human Resources 1,370.17 1 

Trial Courts* 1,208,088 

Fire 5,091,319 

Police 2,264,405 

Sheriff 733,000 

Total $12,137,533 

* The budget of the Trial Courts is not subject to review by the Mayor. Only the 
Board of Supervisors can reduce the budget of the Trial Courts. 

The recommendations of the Budget Analyst are subject to change over the 
next two weeks based on new information provided by City Departments. 

The results of the Budget Analyst's review are detailed in three separate 
reports to the Finance and Labor Committee. Each report contains the 
recommendations of the Budget Analyst, along with explanations supporting those 
recommendations. These reports are as follows: 

• General Administration and Finance and Public Protection (June 20, 
2000, 1:00 p.m.) 

• Human Welfare and Neighborhood Development and Community Health 
(June 21, 2000, 1:00 p.m.) 

• Culture and Recreation, Public Works, Transportation and Commerce 
(June 22, 2000, 1:00 p.m.) 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

12 



Memo to Finance and Labor Committee 
June 19, 2000 




irvey M. Rose 



cc: Supervisor Yee 

Supervisor Bierman 
President Ammiano 
Supervisor Becerril 
Supervisor Brown 
Supervisor Katz 
Supervisor Kaufman 
Supervisor Leno 
Supervisor Newsom 
Supervisor Teng 
Supervisor Yaki 
Clerk of the Board 
Controller 
Clerk of the Board 
Controller 
Steve Kawa 



BOARD OF SUPERVISORS 
BUDGET ANALYST 

13 




r 



,JZLc/cc 
hcc -■>><>) CITY AND COUNTY l&ll jSUiJ OF SAN FRANCISCO 

BOARD OF SUPERVISORS 

BUDGET ANALYST 

1390 Market Street, Suite 1025, San Francisco, CA 94102 (415) 554-7642 

FAX (415) 252-0461 



June16 ' Documents dept. 

TO: Finance and Labor Committee JUN 2 1 2000 

SAN FRANCISCO 
FROM: Budget Analyst PUBLIC LIBRARY 

SUBJECT: Recommendations of the Budget Analyst for Amendment of the Mayor's 
Fiscal Year 2000-2001 Budget. 



The Budget Analyst is providing the attached budget recommendations for 
departments listed below which are the subject of the Finance and Labor Committee 
budget hearing. 

Finance and Labor Committee Budget Hearing - June 20, 2000, 10:00 a ^a*. 

Page 
General Administration and Finance 

ADM Administrative Services 1 

ASR Assessor/Recorder 10 

BOS Board of Supervisors 17 

CAT City Attorney 22 

CON Controller 28 

CPC City Planning 32 

CSC Civil Service Commission 40 

ETH Ethics Commission 43 

HRD Human Resources 47 



Memo to Finance and Labor Committee 
June 16, 2000 
Page 2 



MYR Mayor 54 

REG Elections 58 

RET Retirement System 63 

TTX Treasurer/Tax Collector 68 

GEN General City Responsibility 76 



Public Protection 

ADP Adult Probation 79 

AGW Administrative Services - Consumer Assurance 83 

ANC Administrative Services - Animal Care and Control 86 

CME Administrative Services - Medical Examiner 88 

CRT Trial Courts 93 

DAT District Attorney 102 

FIR Fire Department 105 

JUV Juvenile Probation 118 

PDR Public Defender 124 

POL Police 129 

SHF Sheriff 135 




Harvey M. Rose 



cc: Supervisor Yee 

Supervisor Bierman 
President Ammiano 
Clerk of the Board 
Controller 
Steve Kawa 



BOARD OF SUPERVISORS 
BUDGET ANALYST 



DEPARTMENT: 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 
AMENDMENT OF BUDGET ITEMS 

2000-01 



ADM ADMINISTRATIVE SERVICES 



Financial Data: 

The Department of Administrative Services proposed 549,871,741 budget for FY 2000-01 is 
54,995,317 or 11.13 percent more than the original FY 1999-2000 budget of 544,876,424. The net 
increase from the revised FY 1999-2000 budget is 5465,419 or 0.94 percent. 



Summary of Program Expenditures: 











Proposed 








Mayor's Budget 


Increase (Decrease) 




Fiscal Year 1999-2000 


Fiscal Year 
2000-2001 


From 1999-2000 


Program Expenditures 


Original 


Revised 


Original Budget 


1660 Mission Street Building 


S 1,946,813 


S 1.946,813 


S 1,957,413 


S 10,600 


25 Van Ness Building 


2,343,426 


2,343,426 


2,404,190 


60,764 


555 Seventh Street Building 


- 


463,100 


834,774 


834,774 


Bay Area Electric Vehicle Program 


- 


250,000 


- 


(250,000) 


Central Shops 


15.024,813 


15,101,813 


16,131,727 


1,106,914 


City Administration Support 


477,953 


477,953 


345,021 


(132,932) 


Commute Assistance 


258,959 


318,959 


- 


(258,959) 


County Clerk Services 


557,025 


557,025 


612,117 


55,092 


Disability Access 


24,029 


121,674 


24,029 


- 


Management & Administration(FAC) 


1,868,171 


2,072,518 


2,245,468 


377,297 


Procurement Services 


3,055,304 


3,100,304 


3,276,781 


221,477 


Real Estate Work Order 


2,379,554 


5,630,030 


4,562,967 


2,183,413 


Real Estate General Fund 


354,479 


354,479 


355,053 


574 


Reproduction Services 


5,304,865 


5,444,840 


5,471,318 


166,453 


Risk Management/General 


5,457,698 


5,457,698 


5,185,700 


(271,998) 


Solid Waste Management 


3,991,975 


4,031,975 


4,115,183 


123,208 


Total Operating Expenditures 


$ 43,045,064 


S 47,672,607 


S 47,521,741 


S 4,226,677 


Capital Improvements & Fac. Maint. 


1.831.360 


1.733.715 


2.350 000 


MS 640 


Total Expenditures 


44,876,424 


49,406,322 


49,871,741 


4,995,317 


Less Work Order Recoveries 


f28.869.028) 


(32.445.825) 


m.MTffitt 


n (V>4 fii<n 


Net Expenditures 


$ 16,007,396 


S 16,960,497 


$ 17,978,059 


S 1,970,663 



BOARD OF SUPERVISORS - BUDGET ANALYST 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 
AMENDMENT OF BUDGET ITEMS 

2000-01 



Department: ADM ADMINISTRATIVE SERVICES (continued) 

DEPARTMENT PERSONNEL SUMMARY: 

The number of full-time equivalent positions budgeted for FY 2000-01 is 259.81 FTEs, which is 
3.39 FTEs more than the 256.42 FTEs in the original FY 1999-2000 budget. The FTE allocations by 
program are as follows: 













Proposed 








Mayor's 


Budget 


Increase (Decrease) 




Fiscal Year 1999-2000 


Fiscal Year 


From 


1999- 


2000 


Full Time Equivalents 


Original 


Revised 


2000- 


-2001 


Original Budget 


Central Shops 


110.94 


110.94 




110.89 






(0.05) 


City Administration Suppori 


2.90 


2.90 




3.75 






0.85 


Commute Assistance 


0.49 


0.49 




- 






(0.49) 


County Clerk Services 


7.80 


7.80 




7.80 






- 


Management/Administratior 


22.53 


23.09 




22.70 






0.17 


Procurement Services 


40.79 






40.46 






(0.33) 


Real Estate Workorders 


25.64 


25.64 




2539 






(0.25) 


Reproduction Services 


21.97 


21.97 




24.44 








Risk Management/General 


2.21 


2.21 




3.21 






1.00 


Solid Waste Management 


21.15 


21.15 




21.17 






0.02 



Total 



256.42 



256.98 



259.81 



3.39 



Department Revenues 

Department revenues have increased by SI ,2 16,846 or 14.35 percent and General Fund support 
has increased by 5753,817 or 12.3 percent. 



Description 

The increase in revenues of SI, 2 16, 846 in the Administrative Services budget is partly a result of 
the acquisition of the 555 Seventh Street Building and the increased rental income for the Real Estate 
Department, and partly due to increased payments from other City Department's for Administrative 
Services work-order activities. The overall increase in the budget is due in large part to these increases 
in work orders for various Department programs, such as a 52,183,413 increase in the Real Estate Work 



Board of Supervisors - Budget Analyst 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 
AMENDMENT OF BUDGET ITEMS 

2000-01 



Department: ADM ADMINISTRATIVE SERVICES (continued) 

Order program and a SI, 106,9 14 increase for Central Shops. The Disability Access program includes 
SI, 800, 000 for administrative staffing, consultant studies and capital projects, which is 5493,640 more 
than FY 1999-00 revised budget and which is largely responsible for the increase of $518,640 to Capital 
Improvements & Facilities Maintenance. Major changes in the Department's budget include the (1) 
addition of a new 590,832 Sunshine Ordinance Support Project, (2) creation of a new City Vehicle Pool 
with the purchase often regular vehicles (5230,000) and the lease of five electric vehicles (SI 00,000), 
and (3) transfer of the 5258,959 Commute Assistance budget to the Department of the Environment. 

Comment 

The Mayor's budget provides an increase of 54,995,317. Our recommended reductions, which 
total 5956,796, would still allow an increase of 54,038,521 or 9.0% in the Department's budget. 



Board of Supervisors - Budget Analyst 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 




AMENDMENT OF BUDGET ITEMS 




2000-01 




Department: .ADM - Administrative Services 




Position/ Number AmQJlUl 




Page Equipment 




No. Object Number From To From Tjj 


Savings 


AME Countv Clerk Services 




2526 035 Other Current Expenses S22.640 SI 5,000 


S7.640 


Reduce to reflect actual expenditure rate 





1365 


(1.00) 


0.00 


(48,402) 


1367 


1.00 


0.00 


56,017 


1426 


(1.00) 


0.00 


(41,656) 


1366 


1.00 


0.00 


52,048 


1368 


(1.00) 


0.00 


(60,254) 


1370 


1.00 


0.00 


70,094 


1369 


(1.00) 


0.00 


(65,160) 


1372 


1.00 


0.00 


79,975 



040 Materials & Supplies Budget Only 1 5,000 5,300 

Reduce to reflect actual expenditure rate and delete 
"partial initial implementation of scanning 
technology." 

Subtotal Recommended Reductions - County Clerk Services SI 7.340 

BA1 Solid Waste Management 

2528 001 Permanent Salaries - Misc. 1,406,292 1,355,465 * 

*The recommended reducoon in Permanent 
Salaries - Misc is the total of the following specific 
recommendations regarding individual 
classifications. 

2556 Special Assistant VI 

Special Assistant VTH 

2556 Senior Clerk Typist 

Special Assistant VTO 

2556 Special Assistant DC 

Special Assistant XI 

2556 Special Assistant XI 

Special Assistant XTTI 

Board of Supervisors - Budget Analyst 






(48 - : 





56,017 





(41,656 





52.04SH 





(60,25^ 





70,09^ 





(65.16C 





79,97.' 




4 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 

AMENDMENT OF BUDGET ITEMS 

2000-01 



department: ADM - Administrative Services 



Page 

No. Object 



Position/ Number 
Equipment 
Number From To 



Amount 
From To 



Savings 



Special Assistant XVII 
Special Assistant XVHI 



1376 (1.00) 0.00 ($107,194) 

1377 1.00 0.00 115,359 



SO (5107,194) 
115,359 



Disapprove the proposed upward substitutions. 
These five substitutions have not received 
authorization from the Department of Human 
Resources. 



528 013 Mandatory Fringe Benefits 



333,220 320,005 13,215 



Corresponds to the reduction in Permanent Salaries 
- Misc. 



Subtotal Recommended Reductions - Solid Waste Management 



S64,042 



Management/Administration 



067 Bids, Structures & Improvements 



200,000 



200,000 



•Reserve $200,000 for Hall of Justice Assessment 
Study because the contractor has not yet been 
selected and detailed cost information is not 
currently available. 



Subtotal Recommended Reserves - Management/Administration 



S200.000 



Board of Supervisors - Budget Analyst 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 

AMENDMENT OF BUDGET ITEMS 

2000-01 



Department: ADM - Administrative Services 

Position/ Number AmojuU 

Page Equipment 

No. Object Number From Iq From To Saving s 

FAV Disability Access 

2535 067 Bids, Structures & Improvements Sl,800,000 SI. 800,000 * 

•Reserve a total of S900.000 for the Disability 
Access program, including $250,000 for planned 
consulting projects that have not yet been 
completed and for which detailed cost information 
is not currently available and an additional 
$650,000 for capital projects because list is 
preliminary and will not be determined until later 
this summer. 

2535 067 Bids, Structures & Improvements 1,800,000 1,450,000 S350,00| 

Reduce proposed budget by S3 50.000 because no 
details are available on how office expenditures 
will be made. This reduction would still allow the 
department to maintain actual expenditure rate of 
the current fiscal year 

Subtotal Recommended Reductions - Disability Access S350,00< 

Subtotal Recommended Reserves - Disability Access S900.00 

FAW City Administrator Support 

2537 001 Permanent Salaries - Misc 36.162 

"The recommended reducnon m Permanent 
Salaries - Misc is the total of the following specific 
recommendations regarding individual 
classifications. 






Board of Supervisors - Budget Analyst 



6 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 

AMENDMENT OF BUDGET ITEMS 

2000-01 



ADM - Administrative Services 



Position/ Number Amount 

Page Equipment 

No. Object Number From 1st From To Savings 

562 Special Assistant VI 1365 0.75 0.00 $36,162 SO S36.162 

Delete requested new Special Assistant VI related 
primarily to the Sunshine Ordinance because the 
anticipated workload does not justify the need for 
an additional full-time permanent position. 
Furthermore, the Immigrant Rights Commission 
does not warrant additional staff since this 
Commission received a new full-time permanent 
Special Assistant XTTI in the current fiscal year. 
The proposed budget would still include 530,000 
for DTIS to develop and maintain the required 
Web site for Administrative Services' compliance 
with the Sunshine Ordinance. 

37 013 Mandatory Fringe Benefits 9,670 9,670 

Corresponds to the reduction in Permanent Salaries 
- Misc. 

37 035 Other Current Expenses 15,000 15,000 

Reduce Other Current Expenses to reflect 
elimination of the Special Assistant VI (see above). 

Subtotal Recommended Reductions - City Administrator Support S60,832 



Board of Supervisors - Budget Analyst 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 

AMENDMENT OF BUDGET ITEMS 

2000-01 



Department: ADM - Administrative Services 



Page 

Hih Object 



Position/ Number 
Equipment 
Number From La 



Amount 
From To 



ECU 



Reproduction Services 



2539 040 Materials & Supplies 



$769,206 S469,206 S300,000 



Reduce to reflect savings that will be achieved by 
purchasing $160,000 Color Printer and therefore 
avoiding the higher cost of contracting out for such 
color printing services for City departments. 



Subtotal Recommended Reductions - Reproduction Services 



FCC Procurement Services 

2541 001 Permanent Salaries - Misc. 



2,337,495 2,270,726 



•The recommended reduction in Permanent 
Salaries - Misc is the total of the following specific 
recommendations regarding individual 
classifications. 



2564 



Project Director 



1070 0.75 0.00 



66,769 



66,769 



Delete requested new position as no justification 
has been provided by Department. 



2541 013 Mandatory Fringe Benefits 



576,449 



559,089 



Corresponds to the reduction in Permanent Salaries 
- Misc. 



Subtotal Recommended Reductions - Procurement Services 



Board of Supervisors - Budget Analyst 



8 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 

AMENDMENT OF BUDGET ITEMS 

2000-01 



epartment: ADM - Administrative Services 



'age 

No. Object 

<£J Risk Management/General 

:542 035 Other Current Expenses 



Reduce to reflect actual decreases in insurance 
costs for City departments. 



Position/ Number Amount 

Equipment 
Number From To From 



T_Q Savings 



54,790,116 54,744,663 S45,453 



Subtotal Recommended Reductions - Risk Management/General 



$45,453 



I)A Centra] Shops 

543 061 Equipment Lease Purchase - Initial 

Reduce to reflect actual cost for five electric 
vehicles, based on Purchaser's data ($19,000 x 5 
vehicles). 

544 060 Equipment Purchase 



Reduce equipment purchase for non-specified 
items. The resulting $172,100 Equipment 
Purchase budget would still be $10,100 more than 
the amount budgeted in the current fiscal year. 



100,000 



202,100 



95,000 5,000 



172,100 30,000 



Subtotal Recommended Reductions - Central Shops 



S35,000 



Total Recommended Reductions 



S956J96 



Total Recommended Reserves 



Board of Supervisors - Budget Analyst 



SI. 100,000 

9 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 

AMENDMENT OF BUDGET ITEMS 

2000-01 



DEPARTMENT: 



ASR ASSESSOR/RECORDER 



Financial Data: 

The Department of Assessor/Recorder proposed SI 1,782,676 budget for FY 2000-01 is S472.058 
or 4.17 percent more than the original FY 1999-2000 budget of SI 1,310,618. The net increase from the 
revised FY 1999-2000 budget is 5472,058 or 4. 1 7 percent. 



Summary of Program Expenditures: 

















Proposed 












Mayor's Budget 


Increase (Decrease) 






Fiscal Year 


1999-2000 




Fiscal Year 
2000-2001 


From 1999-2000 


Program Expenditures 




Original 




Revised 


Original Budget 


Personal Property 


S 


2,203,485 


s 


2,203,485 


S 


2,231.212 


S 27,727 


Real Property 




3,064,144 




3,064,144 




3,058,405 


,739) 


Recorder 




2,007,932 




2,007.932 




1,931,763 


(76.169) 


Tax Assessment 




3,443,799 




3,443,799 




3.212,193 


(231,606) 


Technical Services 




591.258 




5^1.258 




1,349,103 


757,845 


Total Expenditures 


S 


11,310.618 


s 


11.310.618 


s 


11.782,676 


S 4-2.058 



Board of Supervisors - Budget Analyst 



10 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 
AMENDMENT OF BUDGET ITEMS 

2000-01 



Department: ASR ASSESSOR/RECORDER (continued) 

DEPARTMENT PERSONNEL SUMMARY: 

The number of full-time equivalent positions budgeted for FY 2000-01 is 133.17 FTEs, which 
are 1.95 FTEs less than the 135.12 FTEs in the original FY 1999-2000 budget. The FTE allocations by 
program are as follows: 

Proposed 
Mayor's Budget Increase (Decrease) 
Fiscal Year 1999-2000 Fiscal Year From 1999-2000 



Full Time Equivalents 


Original 


Revised 


2000- 


2001 


Orig 


nal Budget 


Personal Property 


29.22 


29.22 




28.52 






(0.70) 


Real Property 


42.31 


42.31 




40.53 






(1.78) 


Recorder 


23.75 


23.75 




23.74 






(0.01) 


Tax Assessment 


29.73 


29.73 




22.24 






(7.49) 


Technical Services 


10.11 


10.11 




18.14 






8.03 



Total 135.12 135.12 133.17 (1.95) 



DEPARTMENT REVENUES 

Department revenues have decreased by 55,000 from S3,285,307 to 53,280,307 or 0.15 percent 
and General Fund support has mcreased by 5477,058 or 5.9 percent. 



Description 

The increase in Assessor/Recorder operating expenditures from the FY 1999-00 original budget 
is 5472,058. Major expenditure changes in the proposed budget are summarized below: 

• An increase in Salaries and Fringe Benefits of 5185,376 due to mandated MOU increases, which are 
already identified in the FY 2000-01 recommended budget. 



Board of Supervisors - Budget Analyst 

1 1 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 
AMENDMENT OF BUDGET ITEMS 

2000-01 



Department: ASR ASSESSOR/RECORDER (continued) 

• A decrease of 1.95 FTE positions which are the result of a decrease of 1.0 FTE related to 
substitutions and reassignments that have been approved by the Department of Human Resources, a 
decrease of 1.36 FTEs resulting from increases in Attrition Savings and an off-setting increase of 
0.41 FTEs in Temporary Salaries. The net increase in expenditures is 55,753. 

• An increase of $32,098 from S67.902 to $100,000 in Workers Compensation as requested by the 
Mayor and the Department of Human Resources and an increase of $276,958 from 58,909 to 
$285,867 for computer services as requested by the Department of Telecommunication & 
Information Services (DTIS). These increases have been offset by net reductions in Services by 
Others and Materials and Supplies totaling 528,127. 

• The $32,098 increase to Workers Compensation is due to an increasing workload of cases that have 
occurred during the current fiscal year. 

• The $276,958 increase to the Department of Telecommunications & Information Services (DTIS) is 
due to: (1) a reallocation (S229.474 addition to the Assessor/Recorder) of expenditures among 
General Fund departments resulting in increases for some departments and decreases to other 
departments for a net reduction to the General Fund; and (2) a one-time expenditure (S47.484) 
recommended by the Mayor including a number of improvements and upgrades to equipment, 
infrastructure and internal support that will benefit both DTIS and client departments. 



COMMENT 

The Mayor's budget provides an increase of S477.058. Our recommended reductions, which total 
S170,533, would still allow an increase of S301.525 or 2.7% in the Department's budget. 



Board of Supervisors - Budget analyst 

12 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 

AMENDMENT OF BUDGET ITEMS 

2000-01 



Department: ASR - Assessor/Recorder 



Page 

No. Object 
Rprnrder fFCG) 



Account Title 



Position/ Number 

Equipment 
Number From 1st 



Amount 
From To Saving s 



2584 001 Permanent Salaries - Misc. 

* The recommended reduction in 
Permanent Salaries - Misc. is the 
total of the following specific 
recommendations regarding 
individual classifications. 



5567,268 S552,200 * 



2593 001 Attrition Savings - Misc. 

Increase Attrition Savings to actual 
1999-00 expenditure level adjusted 
for salary increase. 



9993M (0.80) (1.10) (40,416) (55,484) S15,068 



2584 009 Premium Pay 

Reduce to actual 1999-00 
expenditure level adjusted by a cost 
of living factor for 2000-01. 

2584 013 Mandatory Fringe Beneifts 

Corresponds to reduction in 
salaries. 



9,638 5,638 4,000 



146,453 142,565 3,888 



2584 035 Other Current Services 

Reduce to actual 1999-00 
expenditure level adjusted by a cost 
of living factor for 2000-01. 

2584 040 Materials & Supplies 

Reduce to actual 1999-00 
expenditure level adjusted by a cost 
of living factor for 2000-01. 



10,000 5,500 4,500 



14,900 8,325 6,575 



Board of Supervisors - Budget Analyst 



13 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 

AMENDMENT OF BUDGET ITEMS 

2000-01 



Department: ASR - Assessor/Recorder 












Position/ 


Number 


Amount 




Page 


Equipment 








No, Object Account Title 


Number 


From Ic 


From To 


Savings 


Real Property ( FDJ) 










2588 001 Permanent Salaries - Misc. 






$2,3 13,884 S2.302.247 


« 


* The recommended reduction in 










Permanent Salaries - Misc. is the 










total of the following specific 










recommendations regarding 










individual classifications. 











2595 001 Attrition Savings - Misc. 

Increase Attrition Savings to actual 
1999-00 expenditure level adjusted 
for salary increase. 



9993M (3.47) (3.67) (198,150) (209,787) SI 1,637 



2588 013 Mandatory Fringe Benefits 

Corresponds to reduction in 
salaries. 



579,953 577,032 



2588 022 Training 



Reduce to actual 1999-00 
expenditure level adjusted by a cost 
of living factor for 2000-0 1 . 



Personal Property (TDK) 



13,500 10,500 3,000 



2589 001 Permanent Salaries - Misc. 

* The recommended reduction in 
Permanent Salaries - Misc. is the 
total of the following specific 
recommendations regarding 
individual classifications. 



1,673,656 1,637,364 



Board of Supervisors - Budget Analyst 



14 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 

AMENDMENT OF BUDGET ITEMS 

2000-01 



Department: ASR - Assessor/Recorder 



Page 
Njl Object Account Title 

2596 001 Attrition Savings - Misc. 

Increase Attrition Savings to actual 
1999-00 expenditure level adjusted 
for salary increase. 

2589 013 Mandatory Fringe Benefits 

Corresponds to reduction in 
salaries. 



Position/ 

Equipment 

Number 

9993M 



Number Amount 

From lo. From To Savings 

(2.48) (3.10) ($145,038) ($181,330) $36,292 



413,353 



404,389 



8,964 



rax Assessment (FEED 



2591 001 Permanent Salaries - Misc. 

* The recommended reduction in 
Permanent Salaries - Misc. is the 
total of the following specific 
recommendations regarding 
individual classifications. 



883,854 832,592 



2599 001 Attrition Savings - Misc. 

Increase Attrition Savings to actual 
1999-00 expenditure level adjusted 
for salary increase. 

2591 013 Mandatory Fringe Benefits 

Corresponds to reduction in 
salaries. 



9993M (1.20) (2.00) (76,598) (127,860) 51,262 



210,801 198,575 12,226 



2591 022 Training 

Reduce to actual 1999-00 
expenditure level adjusted by a cost 
of living factor for 2000-01. 



14,700 12,700 2,000 



Board of Supervisors - Budget .Analyst 



15 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 

AMENDMENT OF BUDGET ITEMS 

2000-01 



Department: ASR - Assessor/Recorder 







Position/ 


Page 




Equipment 


No. 


Object Account Title 


Number 


2591 


035 Other Current Expenses 

Reduce to actual 1999-00 
expenditure level adjusted by a cost 
of living factor for 2000-01. 





Number Amount 

From Iq from Tjj Savings 

$13,200 SI 0,000 S3. 20 



2591 040 Materials & Supplies 

Reduce to actual 1999-00 
expenditure level adjusted by a cost 
of living factor for 2000-01 . 



50.000 45.000 5.00( 



Total Recommended Reductions 



SI 70,53 



Board of Supervisors - Budpet Analvst 



16 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 
AMENDMENT OF BUDGET ITEMS 

2000-01 



DEPARTMENT: 



BOS Board of Supervisors 



Financial Data: 

The Board of Supervisors proposed $8,900,046 budget for FY 2000-01 is 5294,789 or 3.43 
percent more than the original FY 1999-2000 budget of S8, 605,257. The net increase from the revised 
FY 1999-2000 budget is 5294,789 or 3.43 percent. 



Summary of Program Expenditures: 



Program Expenditures 

Board of Supervisors 
Cable Television Access 
Sunshine Ordinance Task Force 
Youth Commission 



Total Expenditures 



Fiscal Year 1999-2000 


Mayor's Budget 
Fiscal Year 
2000-2001 


Propc 

Increase (I 

From 19S 

Original 


ised 

)ecrease) 

•9-2000 


Original 




Revised 


Budget 


S 8,268,284 
118,000 

218,973 


$ 


8,268,284 
118,000 

218,973 


S 


8,370,825 
130,000 
173,380 
225,841 


S 


102,541 

12,000 

173,380 

6,868 


S 8,605,257 


S 


8,605,257 


s 


8,900,046 


s 


294,789 



Department Personnel Summary: 

The number of full-time equivalent positions budgeted for FY 2000-01 is 75.91 FTEs, which is 
1.46 FTEs more than the 74.45 FTEs in the original FY 1999-2000 budget. The FTE allocations by 
program are as follows: 



Full Time Equivalents 



Proposed 
Mayor's Budget Increase (Decrease) 
Fiscal Year 1999-2000 Fiscal Year From 1999-2000 
Original Revised 2000-2001 Original Budget 



Board of Supervisors 
Sunshine Ordinance Task Force 
Youth Commission 



70.98 



3.47 



70.98 



.47 



70.94 
1.50 
3.47 



(0.04) 
1.50 



Total 



74.45 



74.45 



75.91 



1.46 



Board of Supervisors - Budget analyst 



17 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 
AMENDMENT OF BUDGET ITEMS 

2000-01 



Department: BOS BOARD OF SUPERVISORS (continued) 



DEPARTMENT REVENUES 



Department revenues have increased by S61,000 or 27.9 percent, primarily from Other General 
Government Charges collected by the Board of Supervisors. The General Fund support has increased by 
$233,789 or 2.8 percent. 



DESCRIPTION 

The FY 2000-01 Board of Supervisors budget includes the addition of one new 1372 Special 
Assistant XIII (0.75 FTE) to provide Records and Information Compliance and one new 1376 Special 
Assistant XVII (0.75 FTE) to be Assistant Clerk of the Board, in response to specific recommendations 
included in the Management Audit Report of the Office of the Clerk of the Board that was completed in 
FY 1999-00. To offset these additional costs, the Board of Supervisors Permanent Salaries have been 
reduced to account for increased Attrition Savings and Step Adjustments. In addition, the Professional & 
Specialized Services account is being adjusted for the Budget Analyst's contractually determined cost of 
living adjustment and the amount required for the audit of the Controller's Books. 

The proposed budget also includes one new 1370 Special Assistant XI (0.75 FTE) and one new 
1426 Senior Clerk Typist (0.75 FTE) to provide new staff for the Sunshine Ordinance Task Force, as a 
result of Proposition G, which was approved by the San Francisco voters on November 2, 1999. Overall, 
the Board of Supervisors new Sunshine Ordinance Task Force costs are projected to be SI 73.380 in FY 
2000-01. 



Board of Supervisors - Budget Analyst .. ^ 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 

AMENDMENT OF BUDGET ITEMS 

2000-01 



Department: BOS - Board of Supervisors 







Position/ 


Page 




Equipment 


No. 


Object 


Number 


FAE 


Board of Supervisors 




2606 


001 Permanent Salaries - Misc. 





Number Amount 

From To. From To. Savings 

$3,862,236 53,623,129 * 



* The recommended reduction in Permanent 
Salaries - Misc. is the total of the following 
specific recommendations regarding 
individual classifications. 



2611 1364 Special Assistant V 11.00 5.71 497,311 258,204 $239,107 

Delete one 1364 Special Assistant V position from each of the 1 1 
members of the Board of Supervisors, effective January 8, 2001, in 
accordance with the Supplemental Appropriation and Salary 
Ordinances (Files 101-97-9 and 102-97-3) which created and initially 
funded these 1 1 positions. That Supplemental Appropriation 
Ordinance and Salary Ordinance, previously approved by the Board of 
Supervisors, stated "These positions shall terminate on January 8, 
2001 ." This reduction will result in each member of the Board of 
Supervisors retaining two 1835 Legislative Assistants. A Charter 
Amendment is currently pending in the Rules Committee of the Board 
of Supervisors for the November 7, 2000 ballot to require that each 
member of the Board of Supervisors have three staff members, two 
legislative aides (i.e., the current 1835 Legislative Assistants) and one 
district aide (i.e., the proposed 1364 Special Assistant to be deleted). If 
the Charter Amendment is approved, these 1 1 positions could then be 
funded through a Supplemental Appropriation, after the November 7, 
2000 election. The Clerk of the Board concurs with this 
recommendation of the Budget Analyst to delete the 1 1 positions at 
this time. 



Board of Supervisors - Budget Analyst 1 9 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 

AMENDMENT OF BUDGET ITEMS 

2000-01 



Department: BOS - Board of Supervisors 



Position/ Number Amojml 

Page Equipment 

No. Object Number Erojn In From To Saving s 



2606 013 Mandatory Fringe Benefits S926.922 S864 S62,168 

Corresponds to the reduction in Permanent 
Salaries - Misc. 

Subtotal Recommmended Reductions - Board of Supervisors S301.275 



EAK Sunshine Ordinance Task Force 

2608 Permanent Salaries - Misc 83,492 52,250 * 

* The recommended reduction in Permanent 
Salaries - Misc. is the total of the following 
specific recommendations regarding 
individual classifications. 

2613 1426 Senior Clerk Typist 0.75 0.00 31.242 

Eliminate the proposed new 1426 Senior Clerk 
Typist to assist the new 1 370 Special Assistant .XI 
for the Sunshine Ordinance Task Force. Transfer 
(see below) these Permanent Salaries- Misc funds 
to Temporary Salaries, since the precise workload 
of the new Task Force is not yet known, and 
therefore the required staffing for such Task Force 
cannot yet be determined. 



Board of Supervisors - Budget Analyst ■ 20 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 

AMENDMENT OF BUDGET ITEMS 

2000-01 



Department: BOS - Board of Supervisors 



Page 

N(L Object 

2608 005 Temporary Salaries 



Position/ 

Equipment 

Number 



Number 



From Tja 



Transfer the Permanent Salaries - Misc funds 
identified above to Temporary Salaries since the 
precise workload of the new Task Force is not 
yet known and therefore the required staffing for 
such Task Force cannot yet be determined. 



Amount 

From To Saving s 

SO S3 1,242 (S3 1,242) 



013 Mandatory Fringe Benefits 

Corresponds to the reduction in Permanent 
Salaries - Misc. 



20,888 



15,578 



5,310 



049 Other Materials & Supplies 



S60,000 



S50,000 



10,000 



Decrease to reflect reduction for purchase of 
one server, furnishings and public access spacs 
for Sunshine Ordinance Task Force staff. 



Subtotal Recommmended Reductions - Sunshine Ordinance Task Force 



S15310 



Total Recommended Reductions 



S31 6,585 



Board of Supervisors - Budget Analyst 



21 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 
AMENDMENT OF BUDGET ITEMS 

2000-01 



DEPARTMENT: CAT CITY ATTORNEY 



Financial Data: 

The City Attorney's proposed 540,556,329 budget for FY 2000-01 is S4.408.073 or 12.19 
percent more than the original FY 1999-2000 budget of $36,148,256. The net increase from the revised 
FY 1999-2000 budget is $1,764,999 or 4.55 percent. 

SUMMARY OF PROGRAM EXPENDITURES: 

Proposed 
Mayor's Budget Increase (Decrease) 
Fiscal Year 1999-2000 Fiscal Year From 1999-2000 



Program Expenditures Original Revised 2000-2001 Original Budget 

City Attorney Legal Initiatives $ 1,300,000 $ 1,300,000 S - $ (1,300,000) 

Claims 4,812.515 4.812,515 4,045,798 (766,717) 

Legal Services 30,035,741 32,678,815 36,510,531 6.474,790 



Total Expenditures $ 36,148.256 $ 38,791,330 S 40,556.329 S 4,408,073 

Less Work Order Recoveries t22.7^4.fiW (25 403.793^ m.007 01^ (10.272.377^ 

Net Expenditures $ 13,413,618 S 13,387,537 S 7,549,314 $ (5,864,304) 

Department Personnel Summary: 

The number of full-time equivalent positions budgeted for FY 2000-01 is 342.01 FTEs, which is 
25.61 FTEs more than the 316.40 FTEs in the original FY 1999-2000 budget. The FTE allocations by 
program are as follows: 

Proposed 
Mayor's Budget Increase (Decrease) 
Fiscal Year 1999-2000 Fiscal Year From 1999-2000 
Full Time Equivalents Original Revised 2000-2001 Original Budget 

Claims 48.09 48.09 48 : 09 

Legal Service 268.31 268.31 293.92 25.61 

Total 316.40 316.40 342.01 25.61 

Board of Supervisors - Budget analyst 

22 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 
AMENDMENT OF BUDGET ITEMS 

2000-01 



Department: CAT CITY ATTORNEY (continued) 



DEPARTMENT REVENUES 



Department revenues are budgeted to be $0 in FY 2000-01, a decrease from $1,300,000 in FY 
1999-00. The FY 1999-00 revenues were one-time revenues from the Bank of America litigation 
settlement that were appropriated to the Department for new legal initiatives. General Fund support for 
the City Attorney is budgeted to decrease to $7,549,314, a 37.7 percent decrease in FY 2000-01 
compared to the $12,1 13,618 level of General Fund support in FY 1999-00. This is largely explained by 
an increase in recoveries of approximately $10.2 million from non General Fund sources for FY 2000- 
01. 

DESCRIPTION 

The $4,408,073 in proposed increased expenditures compared to the original FY 1999-00 budget 
is comprised of the following components: 



Increased salary and benefits costs for: 
□ 1 1 new positions 
a reduced attrition savings 
a increased temporary salaries 
a upward substitutions 

Subtotal: increased salaries and benefits 



$1,127,533 

1,217,898 

324,820 

32.716 

$2,702,967 



Increased judgements and claims costs (includes outside counsel) 1,859,207 

Increased professional and specialized services 200,000 

LAN Upgrade 380,000 

Net offsetting reductions (734,101) 

Total $4,408,073 

Details of the proposed increases are as follows. 

Personnel cost increases 

New Positions: Included in the net increase of 25.61 FTEs, the budget contains a request for 8.25 new 
position FTEs for FY 2000-01 , which would equate to 1 1 FTEs on a full year basis. The positions are 
requested for increased services at the Airport and Public Utilities Commission. All of the positions have 
already been added as temporary employees in FY 1999-00. 





Classification 


#FTE 
^000-01 


Salaries & 
Benefits: 2000-01 


Annualized 
#FTE 


Annualized 

Salaries & 

Benefits 


81/8 
8180 


Senior Atty 
Principal Atty 


3.75 
4.50 


$466,684 
$660,849 


5.0 
6.0 


$622,245 
$881,132 




Total 


8.25 


$1,127,533 


11.00 


$1^03,377 



Increased temporary salaries: The Department is proposing an increase in its Temporary Salary 
budget from $210,886 in FY 1999-00 to $508,886 in FY 2000-01, an increase of $298,000. With 
mandatory fringe benefits, total increased costs would be $324,820. The increased funds would cover the 
salary costs for the first three months for the 1 1 proposed new positions for additional legal services for 



Board of Supervisors - Budget Analyst 



23 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 
AMENDMENT OF BUDGET ITEMS 

2000-01 



Department: CAT CITY ATTORNEY (continued) 

the Airport and Public Utilities Commission. Temporary salaries are requested for the 1 1 new positions 
because the Controller's budget instructions require that new positions be budgeted as .75 FTE each for 
their first year. 

Reduced attrition savings: The Department is proposing reducing its attrition savings from S2,29 1,285 
to SI, 327,401, which represents a cost increase of 5963,884 in salaries and 5250,610 in benefits for a 
total cost increase of 51,214,494 in FY 2000-01. The Department is proposing this reduction in attrition 
savings to provide more staffing to meet its increased workload in FY 2000-01 . The reduction in 
attrition savings represents 12.01 additional FTEs for the department. 

Position substitutions: The Department is proposing substituting two existing Head Attorney positions 
with one Confidential Chief Assistant and one Assistant Chief Attorney at an annual cost increase of 
532,716 in salaries and benefits. 





Classification 


U Kit 
2000-01 


Salaries and 
Benefits: 2000-01 


8182 
AB44 
8183 


Head Attorney 
Confidential Chief Assistant 
Assistant Chief Attorney 


j 
1 

1 


S (2/J.290) 
$ 155,348 
5 150.658 




total 


1 


S 32,716 



Non-personnel cost increases 

Non personnel cost increases are proposed for rent, which is increasing by 167 percent for the 
Department's Fox Plaza offices in January 2001, judgements, claims and outside counsel, and computer 
upgrades. 

Comment 

The Mayor's budget provides an increase of S4,408,073. Our recommended reductions, which total 
5513,751, would still allow an increase of 53,894,322 or 10.8% in the Department's budget. 



Board of Supervisors - Budget Analyst 



24 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 

AMENDMENT OF BUDGET ITEMS 

2000-01 



Department: CAT - City Attorney 



Page 

No. Object 
Le gal Services 



Title 



Position/ Nnmber 
Equipment 
Number From To 



Amount 



From 



Ifl 



Savings 



262] 



001 Permanent Salaries 

* The recommended reduction in Permanent 
Salaries - Misc. is the total of the following 
specific recommendations regarding 
individual classifications. 



$24,200,285 24,168,285 



2627 



Attrition Savings 

This increase in attrition savings would offset 
the costs of two proposed upward 
substitutions. Since both of the substitutions 
already took place in FY 1999-00, without 
prior Board of Supervisors approval, the 
department has demonstrated that these 
increased costs could be absorbed without an 
increase in its salary budget. Therefore, the 
Budget Analyst recommends continuing to 
maintain these positions without an increase in 
salary and benefits costs. 



(1,231,360) ($1,263,360) $32,000 



262 1 005 Temporary Salaries 



This would reduce a portion of the funding used in 
FY 1999-00 for temporary new staff at the Airport 
and the Public Utilities Commission in response to 
approximately $3 rnillion worth of additional legal 
services requested by those departments. The 1 1 
additional positions are now included as permanent 
positions in the FY 2000-01 City Attorney budget 
which reduces the need for continuing to fund 
temporary salaries at the same level as last year. 
The full annual cost of the 11 new positions 
funded is approximately $1,503,377 in salaries and 
benefits. In addition to these new positions, the 
City Attorney's budget proposes a reduction in 
attrition savings which adds another $966,586 to 
the Department's salary funding. 



508,886 



258,886 



250,000 



Board of Supervisors - Budfet Analyst 



25 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 

AMENDMENT OF BUDGET ITEMS 

2000-01 



Department: CAT - City Attorney 



Page 
No. 

2621 



Object Account Title 

053 Judgements and Claims 



Position/ 
Equipment 
Number From 



Number 



Amount 



From 

2,759,207 



2,626,207 



Saving; 
133,001 



Reduces amount for outside counsel for 
potentially pending Business Tax 
litigation. The court issued a summary 
judgement in May 2000 in favor of rwo 
plaintiffs. General Motors and Eastman 
Kodak, in a lawsuit concerning the 
imposition of the City's Business Tax. As 
a result of that summary judgement, the 
City Attorney's work on that case changed 
from a full lawsuit to an appeal of the 
summary judgement and funding was 
reduced accordingly, including funding 
for outside counsel. This recommended 
reduction of 5133,000 proportionately 
reduces the budget for outside counsel 
included in the City Attorney's FY 2000- 
01 budget which assumes full litigation of 
similar lawsuits against the City's 
Business Tax filed by five additional 
plaintiffs. This recommended reducnon 
assumes that these additional lawsuits will 
not be fully litigated based on the 
summary judgement in the similar 
General Motors/Eastman Kodak case. In 
the event that full litigation does occur, 
the Department would still have 
$2,626,207 available in this Judgements 
and Claims account 



Board of Supervisors - Budget Analyst 



9fi 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 

AMENDMENT OF BUDGET ITEMS 

2000-01 



Department: CAT - City Attorney 



Page 
No. 

2621 



!628 



Position/ 

Equipment 

Number 



Object Account Title 

060 Equipment Purchase 

* The recommended reduction in 
equipment is the total of the following 
specific recommendations. 

LAN Upgrade CT001R 

This amount of $98,75 1 was 
erroneously budgeted twice including 
once in this line item and once in 027 
Professional and Specialized Services. 



Number Amount 

From Tj2 From To Savings 

382,000 $283,249 * 



382,000 283,249 98,751 



Total Recommended Reductions 



$513,751 



Board of S u pervisors - Budget Analys t 



27 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 
AMENDMENT OF BUDGET ITEMS 

2000-01 



DEPARTMENT: 



CON Controller 



Financial Data: 

The Controller's proposed 522,628,956 budget for FY 2000-01 is_Sl.944.524 or 9.40 percent 
more than the original FY 1999-2000 budget of S20,684,432. The net increase from the revised FY 
1999-2000 budget is SI, 944,524 or 9.40 percent. 



SUMMARY OF PROGR4M EXPENDITURES: 



Fiscal Year 1999-2000 



Program Expenditures 



Original 



Revised 



Proposed 
Mayor's Budget Increase (Decrease) 
Fiscal Year From 1999-2000 

2000-2001 Original Budget 



Accounting Operations and Systems S S.413.~24 S 8,413.724 S 10,181,136 S 1.767,412 

Audits 2,393,759 2.393,759 2,362,996 (30.763) 

Management, Analysis, and Reports 3,245,520 3.245,520 4.254,379 1,008,859 

Payroll and Personnel Services 6,631,429 6,631,429 5,830,445 (800,984) 



Total Expenditures 

Less Work Order Recoveries 

Net Expenditures 



S 20.684.432 S 20.684.432 S 22.628.956 S 1.944.524 
fl.S 24 .842) f 1.82 4 .8 4 2) (1 .9 67 .320) (142.678^ 



$ 18,859,590 S 18.859.590 S 20,661,436 S 



1,801,846 



Board of Supervisors - Budget Analyst 



28 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 

AMENDMENT OF BUDGET ITEMS 

2000-01 



Department: CON - CONTROLLER (continued) 



DEPARTMENT PERSONNEL SUMMARY: 



The number of full-time equivalent positions budgeted for FY 2000-01 is 164.90 FTEs, which is 
3.76 FTEs more than the 161.14 FTEs in the original FY 1999-2000 budget. TheFTE allocations by 
program are as follows: 



Full Time Equivalents 

Accounting Operations and Systems 

Audits 

Management, Analysis, and Reports 

Payroll and Personnel Services 









Proposed 






Mayor's Budget 


Increase (Decrease) 


Fiscal Year 


1999-2000 


Fiscal Year 


From 1999-2000 


Original 


Revised 


2000-2001 


Original Budget 


55.74 


55.74 


54.38 


(1.36) 


26.87 


26.87 


26.35 


(0.52) 


29.41 


29.41 


36.07 


6.66 


49.12 


49.12 


48.10 


(1.02) 



Total 161.14 161.14 164.90 3.76 



Department Revenues 

Department revenues have increased by 590,200 or 27.9 percent. General Fund support has 
increased by SI, 71 1,646 or 9.2 percent. 



DESCRIPTION 

Increased expenditures of 51,944,524 for the Controller's proposed FY 2000-01 budget are due 
primarily to MOU mandated salary and benefit increases and approximately 5450,000 for salaries and 
benefits related to the creation of seven new positions (5.25 FTE) for a team of management and 
financial analysts to provide assistance to City departments. This "Citywide Special Projects Team" 
would, according to the Mayor's proposed budget, be knowledgeable about City processes and practices 
and able to respond to urgent project needs in lieu of hiring outside consultants. The positions and salary 
requirements for this initiative are shown in the table on the following page. 



Board of Supervisors - Budget An.au yst 



29 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 

AMENDMENT OF BUDGET ITEMS 

2000-01 



Department: CON - CONTROLLER (continued) 



Position 


Number of 
Positions 


FY 


2000-01 
FTE 


FY 2000-01 
Salaries 


Annual Salary 
Expenditure 


1369 Special Assistant X 
1372 Special Assistant XI 
1374 Special Assistant XV 
Total 


3 
3 
i 

7 




2.25 
2.25 
0.75 
5.25 


S 133.283 

163,566 

63,134 

S 359.983 


S 177.711 

218,088 

84.179 

S 479,978 



Comment 

The Mayor's budget provides an increase of $1,944,524, Our recommended reductions, which 
total 575,096, would still allow an increase of SI. 869.428 or 9.04% in the Controller's budget. 



Board of Supervisors - Budget Analyst 

o U 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 

AMENDMENT OF BUDGET ITEMS 

2000-01 



Department: CON - Controller 



Page 
No. Object 

2637 001 Permanent Salanes-Misc 



Position/ 

Equipment 

Number 



The recommended reduction in Permanent 
Salaries - Misc. is the total of the following 
specific recommendations. 



Number Amount 

From To From To 

S 2,154,113 S 2,094,513 



Savings, 



2646 001 Attrition Savings 



9993M 



(73,799) (133,399) 



S59.600 



Increase Miscellaneous Attrition Savings in 
Management, Budget and Analysis program to 
the level required for current staffing and 
addition of proposed Citywide Special Projects 
Team. 



2637 013 Mandatory Fringe Benefits 

Reduction to Mandatory Fringe Benefits 
corresponding to Reduced Permanent 
Salaries - Miscellaneous 



489.365 



473,869 



15.496 



Total Recommended Reductions 



75.096 



Board of Supervisors - Budget Analyst 



31 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 
AMENDMENT OF BUDGET ITEMS 

2000-2001 



DEPARTMENT: CPC CITY PLANNING 



Financial Data: 

The City Planning Department's proposed S13.599.679 budget for FY 2000-01 is SI, 207,086 or 
9.74 percent more than the original FY 1999-2000 budget of 512,392,593. The net increase from the 
revised FY 1999-2000 budget is 5863,229 or 6.78 percent. 

Summary of Program Expenditures: 

Fiscal Year 1999-00 Fiscal Year From 1999-2000 

Program Expenditures Original Revised 2000-2001 Original Budget 

Long-Range Planning S3.700.044 S4.057.269 53,954,352 S254.308 
Current Planning 6,608,701 6,595,333 6,588,772 (19,929) 

Administration/Planning 2,083,848 2,083,848 2,314,388 230,540 

Total Operating Expenditures $12,392,593 SI2.736.450 S12.857.512 S464.919 

Capital Projects & Facilities 

Maint. 

Total Expenditures 

Work Order Recoveries 

Net Expenditures SI 1 ,849,02 1 









742,167 


742,167 


SI 2,392,593 


SI 2,736,450 


SI 3,599,679 


SI. 207,086 


(543.572) 


(543.572) 


(764.374) 


(220,802) 



Board of Supervisors - Budget Analyst 



32 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 

AMENDMENT OF BUDGET ITEMS 

2000-2001 



Department: Citv Planning (continued) 

Major expenditure changes from the original FY 1999-00 budget to the proposed FY 2000-01 
budget are as follows: 





FY 1999-00 


FY 2000-01 


Increase 


Expenditure 


Budset 


Budget 


(Decrease) 


Permanent Salaries 


58,056,182 


$7,971,201 


($84,981) 


Temporary Salaries 





$70,000 


70,000 


Mandatory Fringe Benefits 


1,852,456 


1,958,623 


106,167 


Professional & Specialized Services 


986,300 


1,175,300 


189,000 


Other Current Expenses 


458,698 


504,028 


45,330 


Equipment Purchase 


20,000 


102,500 


82,500 


Services of Other Departments 


433.809 


540.087 


106.278 


Total 


511,807,445 


512,251,739 


$444,294 


Department Personnel Summary: 







The number of full-time equivalent positions budgeted for FY 2000-01 is 129.76 FTEs, which is 
1.64 FTEs less than the 131.40 FTEs in the original FY 1999-2000 budget. The FTE allocations by 
program are as follows: 



Full Time Equivalents 


Fiscal Year 1998-99 
Original Revised 


Fiscal Year 
2000-2001 


From 1999-2000 
Original Budget 


Long-Range Planning 
Current Planning 
Adrnimstration/Planning 


27.35 

88.25 

15.8 


27.35 

88.25 

15.8 




28.85 
84.36 
16.55 


1.5 
-3.89 
0.75 


Totals 


131.4 


131.4 




129.76 


-1.64 



The City Planning Department's budget contains one new position for FY 1999-00. a General 
Fund supported Transcriber/Typist position to assist the Department in complying with the Sunshine 
Ordinance. 



Board of Supervisors - Budget Analyst 



33 



RECOMMENDATIONS OF THE BUDGKT ANALYST FOR 

AMENDMENT OF BUDGET ITEMS 

2000-2001 



Department: Cirv Planning (continued) 



The City Planning Department's one proposed new position is as follows: 



Name 


Classification 


No. of 
Positions 


Salary at 
Top Step 


Annualized 

No. of 

Positions 


Total Salaries 


Transcriber/Typist 


1430 


0.75 $31,122 


1 531,122 



The Budget Analyst is recommending that this new position be disapproved, due to inadequate 
justification. 

DEPARTMENT REVENUE 

Department revenues have increased by S29.269 or 0.32 percent, from 59,091,275 in FY 1999-00 
to $9,120,544 in FY 2000-01. General Fund support has increased by $655,394, or 19.9 percent, from 
$3,301,318 in FY 1999-00 to $3,956,713 in FY 2000-01. 



DESCRIPTION 

1. According to its FY 2000-01 Work Program, the City Planning Department's strategic budget 
objectives are as follows: 

• Implement planning services that will promote the development of the San Francisco housing 
stock. 

• Implement training efforts to ensure that all new and existing staff is adequately trained and has 
support to fulfill their role as effectively a possible. 

• Direct the use of San Francisco resources to promote compatibility between transportation and 
land use. 

2. The City Planning Department's budget includes an increase of $70,000 in Temporary Salaries, 
from $0 to $70,000. According to the Department, this increase reflects actual expenditures in past years. 
The Department uses Temporary Salaries primarily to hire graduate school-level interns to support the 
Department's increasing workload. 

3. The City Planning Department's budget includes an increase of SI 89,000 in Professional and 
Specialized Services. According to the Department, this entire increase of $189,000 is budgeted for 
environmental review work for the Transbay Terminal Study. The Department advises that these costs 
will be fully funded by the Redevelopment Agency. 



Board of Supervisors - Budget Analyst 



34 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 
AMENDMENT OF BUDGET ITEMS 

2000-2001 



Department: Citv Planning (continued) 

4. The City Planning Department's budget includes an increase of 582,500, or 400 percent, ; n 
Equipment Purchases, from $20,000 to SI 02,500. A total of $70,000 in new equipment purchases will 
support the Department's computer replacement program to retire and replace one-sixth the 
Department's existing personal computer stock by the end of FY 2000-01. According to the Department, 
the computers to be replaced are out-of-date and insufficient for their needs. In past years, the 
Department has requested supplemental appropriations to replace old computers. The remaining S32,500 
in Equipment Purchases is budgeted to replace the Department's existing passenger van, which was 
purchased in 1986. 

5. The City Planning Department's budget includes 2.33 FTEs of grant- funded positions with annual 
salaries totaling $150,870. These salaries, mandatory fringe benefits, and other related costs are fully 
funded from the grant revenues. 

6. The City Planning Department's budget continues to fund the Better Neighborhoods 2002 
Program, which was initiated in 1999 and is estimated to cost $1.3 million per year for four years. In FY 
1999-00, the Board of Supervisors provided $1,260,317 to fund the program. The budget for FY 2000- 
01 includes an additional $1,191,390 for the program, including $900,000 in Professional and 
Specialized Services. The goal of the Better Neighborhoods 2002 is to provide neighborhood-wide 
profiles and planning, which incorporate analyses of land use, transportation, urban design and the real 
estate market. The City Planning Department is currently developing such profiles and plans for two 
City neighborhoods: Upper Market/Octavia and the Central Waterfront. The Budget Analyst considers 
the decision to fund such area plans to be a policy matter for the Board of Supervisors. 

7. The Mayor's Office has increased salary Attrition Savings in the Better Neighborhoods 2002 
Program by $185,185 for FY 2000-01, from $0 to $185,185. 

Comment 

The Mayor's budget provides an increase of $464,919. Our recommended reductions, which total 
$122,577, would still allow an increase of $342,342 or 2.8 percent in the Department's budget. 



Board of Supervisors - Budget Analyst 

35 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 

AMENDMENT OF BUDGET ITEMS 

2000-01 



CPC-City Planning 



Page 

£{& Object Account Title 

long Rang e Planning ( FAOT 



Position/ Nurrber 

Equipment 

Number From Is 



Amount 



I mm 



la 



Saving s 



2655 001 Permanent Salaries 

•The recommended reduction in 
Permanent Salaries - Misc. is the 
total of the following specific 
recommendations regarding 
individual classifications. 



SI. 329.2 17 SI. 3 16.265 



2663 001 Attrition Savings - Misc. 



9993M 



0.48 0.67 (32,476) (45,428) 12,952 



Increase in Attrition Savings to offset the effect 
of the Department's upward substitution of one 
position, which would result in increased salary' 
and fringe benefit costs made during previous 
years, without budgetary approval by the Board 
of Supervisors. This recommendation will allow 
the Department to continue to maintain the 
existing filled positions, at the higher salary and 
fringe benefit cost, but will not result in 
additional expenditures for the Department 
because an offsetting amount will be eliminated 
from the budget by an increase in Artnnon 
Savings. 



2655 013 Mandatory Fringe Benefits 



Corresponds to reduction in 
salaries. 



308.486 305,118 3.36S 



2655 027 Professional and Specialized Services 
"The Budget Analyst considers funding for 
contractual services to develop area plans and 
profiles of the Upper Market/Octavia and Central 
Waterfront neighborhoods for the Better 
Neighborhoods 2002 program to be a policy 
matter for the Board of Supervisors. 



900,000 900.000" 



Board of Supervisors - Budg et Analyst 



36 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 

AMENDMENT OF BUDGET ITEMS 

2000-01 



CPC - Citv Planning 



Position/ Number Amount 

Page Equipment 

No. Object Account Title Number From To. From To Savings 

Administration/Support (FEF) 

2661 001 Permanent Salaries $1,074,572 51,027,482 * 

*The recommended reduction in 
Permanent Salaries - Misc. is the total 
of the following specific 
recommendations regarding individual 
classifications. 



2671 001 Transcriber Typist 1430 0.75 31,242 31,242 

To disapprove one requested new Transcriber 
Typist position to comply with requirements of the 
Sunshine Ordinance. The Department has not 
sufficiently justified this new position. The Budget 
Analyst notes that the amount of work necessary 
to meet Sunshine Ordinance requirements has not 
yet been fully determined. Therefore, the Budget 
Analyst recommends that the Department meet its 
requirements in FY 2000-01 using existing staff 
and temporary salaries until a detailed justification 
for additional staff, tied to additional workload, is 
formulated. The Department already has one Clerk 
Typist spending 100% of her tune on work related 
to the Sunshine Ordinance, one Commission 
Secretary, who dedicates 50% percent of her time, 
and the equivalent of 1.49 FTEs. or 570,000, in 
Temporary Salary increases for FY 2000-0 1 . 



37 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 

AMENDMENT OF BUDGET ITEMS 

2000-01 



CPC-Citv Planning 



Position/ 
Page Equipment 

No. Object Account Title Number 

2671 001 Attrition Savings - Misc. 9999M 

Increase in Attrition Savings to offset the effect of the 
Department's upward substitution of one position, 
which would result in increased salary and fringe 
benefit costs made during previous years, without 
budgetary approval by the Board of Supervisors. This 
recommendation will allow the Department to 
continue to maintain the existing filled positions, at the 
higher salary and fringe benefit cost, but will not result 
in additional expenditures for the Department because 
an offsetting amount will be eliminated from the 
budget by an increase in Attrition Savings 



>H III her 



Amount 



From 

0.20 



Ifl 



From 

(SI 3.244 1 



Ifl 

(S29.092) 



Savings 

SI 5,848 



2660 013 Mandatory Fringe Benefits 

Corresponds to reduction in 
salaries. 

2661 040 Materials and Supplies 

To reduce request for addinonal 
materials and supplies not sufficiently 
justified. We recommend approval of 
$64,300 for materials and supplies, or 
525,000 more than the FY 1999-00 
budget of 539,300. 



1,180,555 1,168,312 



89,300 64.300 25.000 



Current Planning iFDP) 

2660 001 Permanent Salaries 

•The recommended reduction in 
Permanent Salaries - Misc. is the total 
of the following specific 
recommendations regarding individual 
classifications. 



4.896.680 4.889.201 



Board of Supervisors - Budget Analyst 



38 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 

AMENDMENT OF BUDGET ITEMS 

2000-01 



CPC - City Planning 



Number 



Page 
No. Object Account Title 

2669 001 Attrition Savings - Misc. 



Position/ 
Equipment 
Number From To 

9993M 4.94 5.06 



Amount 

From Ifi Savings 

(5306,445) (5313,924) S7,479 



Increase in Attrition Savings to offset the effect 
of the Department's upward substitution of 
positions, which would result in increased 
salary and fringe benefit costs made during 
previous years, without budgetary approval by 
the Board of Supervisors. This recommendation 
will allow the Department to continue to 
maintain the existing filled positions, at the 
higher salary and fringe benefit cost, but will 
not result in additional expenditures for the 
Department because an offsetting amount will 
be eliminated from the budget by an increase in 
Attrition Savings. 



2660 013 Mandatory Fringe Benefits 

Corresponds to reduction in 
salaries. 



1,180,555 1,178,610 1,945 



2660 060 Equipment Purchase 

* The recommended reduction is 
the total of the following specific 
recommendations. 



102,500 90.000 



2673 



060 Equipment Not Detailed 

To provide funding for one new 
sedan, instead of the request for one 
new passenger van included in the 
FY 2000-0 1 budget, as requested by 
the Department. 



(12,500) 12.500 



Total Recommended Reductions 



SI 22.577 



Board of Supervisors - Budget Analyst 



39 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 
AMENDMENT OF BUDGET ITEMS 

2000-01 



DEPARTMENT: CSC CIVIL SERVICE COMMISSION 

Financial Data: 

The Civil Service Commission's proposed S768,073 budget for FY 2000-01 is SI 6,548 or 2.20 
percent more than the original FY 1999-00 budget of 5751,525. The net increase from the revised FY 
1999-00 budget is also 516,548 or 2.20 percent. 



SUMMARY OF PROGRAM EXPENDITURES: 

Proposed 
Mayor's Budget Increase (Decrease) 
Fiscal Year 1Q99-2000 Fiscal Year From 1999-2000 

Program Expenditures Original Revised 2000-2001 Original Budget 

Civil Service Commission 5 751,525 S 751,525 S 768,073 S 16,548 

Less Work Order Recoveries (107,533 ) (107.533 ) (110,718 ) (3.185) 

Net Expenditures S 643,992 5 643,992 5 657,355 5 13,363 

DEPARTMENT PERSONNEL SUMMARY: 

The number of full-time equivalent (FTE) positions budgeted for FY 2000-01 is 7.04, which is 
unchanged from the original FY 1999-00 budget. The FTE allocations by program are as follows: 

Proposed 
Mayor's Budget Increase (Decrease) 
Fiscal Year 1999-2000 Fiscal Year From 1999-2000 



Full Time Equivalents Original Revised 2000-2001 Original Budget 

Civil Service Commission 7.04 7.04 7.04 



Total 7.04 7.04 7.04 



Board of Supervisors - Budget analyst 

40 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 
AMENDMENT OF BUDGET ITEMS 

2000-01 






Department: CSC Civil Service Commission (continued) 

DEPARTMENT RE VENT RES 

Department revenues have remained unchanged from the original FY 1999-00 budget of SO. The 
proposed General Fund support is S657,355, which is an increase of $13,363 or 2.08 percent over the 
$643,992 General Fund support for the FY 1999-00 original budget. 

DESCRIPTION 

The increase in Civil Service Commission net expenditures from the FY 1999-00 original budget 
is $13,363. The net expenditure increase in the proposed budget is related primarily to: 

• a $9,1 14 increase in 081 Services of Other Departments due to increases in Telecommunications 
and Information Services (TIS) costs directly related to Applications Support, City Wide 
Services and Special Projects, 

• a $7,1 17 increase in 027 Professional & Specialized Services due to increased funding for 
Administrative Law Judges, Hearing Officers and Court Reports (totaling $4,000) and Delivery, 
Contracted and Miscellaneous Expenses (totaling $3,1 17), and 

• a $4,743 net decrease in all other non-personnel expenses. 

Personnel: The proposed budget includes no change in full-time equivalent (FTE) positions over the FY 
1999-00 original budget. The proposed budget includes salaries and fringe benefits costs of $601,401. a 
net increase of $ 1,875 or 4. 1 9 percent over the FY 1 999-00 original budget. 

COMMENT 

The Mayor's budget provides an increase of $16,548 or 2.20 percent. Our recommended 
reductions, which total $6,624, would still allow an increase of $9,924 or 1.32 percent in the 
Department's budget. 



Board of Supervisors - Budget Analyst . ., 

4 1 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 

AMENDMENT OF BUDGET ITEMS 

2000-01 



Department: CSC - Civil Service Commission 



Page 
No. Object 



Position/ 
Equipment 

Number 



N_umbej: 



\mnunt 



From Iq From 



Iq 



Savings, 



2675 



027 



Professional & Specialized 
Services 



S32.124 S25.500 S6,624 



The Department has not adequately justified the requested increase for the 
following costs: Administrative Law Judges and Hearing Officers 
(52,000), Court Reporters (S2.000). Other Contracted Services (SI. 500) 
and Other Miscellaneous Expenses (SI, 124). The recommended amount 
of S25.500 is S7.000 greater than the esnmated spending of 518,500 for 
FY 1999-00 and is S49? greater than the FY 1999-00 budget of S25.007. 



Total Recommended Reductions 



S6.624 



Board of Supervisors - Budget Analyst 



42 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 
AMENDMENT OF BUDGET ITEMS 

2000-01 



DEPARTMENT: 



ETH ETHICS COMMISSION 



Financial Data: 

The Ethics Commission proposed 5665,771 budget for FY 2000-01 is S54,840 or 8.98 percent 
more than the original FY 1999-2000 budget of S6 10,931. The net increase from the revised FY 1999- 
2000 budget is $54,840 or 8.98 percent. 



SUMMARY OF PROGRAM EXPENDITURES: 



Fiscal Year 1999-2000 



Program Expenditures Original 



Revised 



Proposed 
Mayor's Budget Increase (Decrease) 
Fiscal Year From 1999-2000 

2000-2001 Original Budget 



Ethics Commission 



610,931 S 610,931 S 



665,771 $ 



54,840 



Total Expenditures 



$ 610,931 S 610,931 S 



665,771 S 



54,840 



Department Personnel Summary: 

The number of full-time equivalent positions budgeted for FY 2000-01 is 6.89 FTEs, which is 
unchanged from the original FY 1999-2000 budget. The FTE allocations by program are as follows: 



Full Time Equivalents 



Proposed 
Mayor's Budget Increase (Decrease) 
Fiscal Year 1999-2000 Fiscal Year From 1999-2000 

2000-2001 



Original 



Revised 



Original Budget 



Ethics Commission 



6.89 



6.89 



6.89 



Total 



6.89 



6.89 



6.89 



Board of Supervisors - Budget Analyst 



43 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 
AMENDMENT OF BUDGET ITEMS 

2000-01 



Department: ETH ETHICS COMMISSION (continued) 



DEPARTMENT REVENUES 

Department revenues have increased by S38.090 or 1 1 5 percent, due to the increase in the 
number of candidates running for election in the next fiscal year and the expectation that additional 
lobbyists and campaign consultants will pay additional fees and fines. General Fund support has only 
increased by $16,750 or 2.9 percent. 

DESCRIPTION 

Although there are no changes in the number of positions, the upward substitution of three 
positions as well as step and cost of living adjustments result in additional salary and fringe benefit 
expenditures of $32,769. In addition, the Ethics Commission will be moving from Fox Plaza to 30 Van 
Ness, as of December 1 , 2000, resulting in additional rental, tenant improvements, moving, computer 
and furniture expenses totaling $88,846. Offsetting some of these additional expenditures will be 
reductions in the Services of Other Departments. 

On May 15, 2000, the Ethics Commission approved a Charter Amendment to place on the 
November 7, 2000 ballot, which would provide limited public financing for Board of Supervisors 
candidates who raise at least S7.500. The Budget Analyst notes that on April 24, 2000, the Board of 
Supervisors did not approve similar campaign finance reform ordinances (Files 00-0328, 00-0685 and 
00-0687). If the proposed Charter Amendment is approved by the San Francisco voters on November 7, 
2000, this Charter .Amendment would take effect on January 1, 2001. The Ethics Commission advises 
that under the proposed Charter Amendment, the City's General Fund costs would be limited to S2 per 
year per resident in San Francisco, or approximately SI, 600,000 annually (approximately 800,000 
residents x $2). The annual approximately $1,600,000 includes funds to pay for the public financing of 
the Board of Supervisors candidates and includes approximately S350.000 annually for administrative 
support for the Ethics Commission. Funding for such additional General Fund expenses are not included 
in the proposed FY 2000-01 budget and would therefore require a separate supplemental appropriation, 
if the proposed Charter Amendment is approved. 

COMMENT 

The Mayor's budget provides an increase of S54,S40. Our recommended reductions, which total 
S30,752, would still allow an increase of S24.088 or 3.94% in the Department's budget. 



Board of Supervisors - Budget analyst 4 4 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 

AMENDMENT OF BUDGET ITEMS 

2000-01 



Department: ETH - Ethics Commission 



Page 
No. Object 

2681 001 Permanent Salaries 



Position/ 

Equipment 

Number 



Number Amount 

Emm To. From To. Savings 

S375,888 S374,373 



* The recommended reduction in Permanent 
Salaries - Misc. is the total of the following 
specific recommendations regarding 
individual classifications. 



682 9993M Attrition Savings -Misc 



(5/773) (7,288) S 1.5 15 



Increase Attrition Savings - Misc to offset the 
effect of the Department's upward substitution of 
positions that would result in increased salary 
and fringe benefit costs made during the past 
year, without budgetary approval by the Board 
of Supervisors. This recommendation will 
enable the Department to continue to maintain 
the existing filled positions at the higher salary 
and fringe benefit cost, but will not result in 
additional expenditures for the Department 
because an offsetting amount will be eliminated 
from the budget by this increase in attrition 
savings. 



Il 013 Mandatory Fringe Benefits 

Corresponds to the reduction in Permanent 
Salaries - Misc. 



97,402 



97,165 



237 



Board of S u pervisor s - Bud get Ana lyst 



45 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 

AMENDMENT OF BUDGET ITEMS 

2000-01 



Department: ETH - Ethics Commission 



Page 
No. 

2681 



Object 

035 Other Current Expenses 

Reduce to reflect actual increase in rent costs for 
move of administrative offices from Fox Plaza to 
30 Van Ness effective December 1 , 2000. 



Position/ 


Number 


Amojinj 




Equipment 








Number 


From To 


From To 


Savings 






S111.900 5106,900 


55,000 



2681 040 Materials & Supplies Budget 

> Reduce to eliminate S24,000 of new furnishings, 

because (1) visual inspection of existing Ethics 
Commission furnishings indicates that there is 
currently more than sufficient furniture available 
for staff and (2) lack of detailed cost justification 
of proposed new furnishings. 



27,949 



3,949 24,000 



Total Recommended Reductions 



S30.752 



Board of Supervisors - Budget Analyst 



46 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 
AMENDMENT OF BUDGET ITEMS 

2000-01 



DEPARTMENT: 



HRD Human Resources 



Financial Data: 

The Department of Human Resources proposed 587,077,230 budget for FY 2000-01 is 
S8,626,416 or 1 1.00 percent more than the original FY 1999-00 budget of S78,450,814. The net increase 
from the revised FY 1999-00 budget is 58,185,814 or 10.38 percent. 



Summary of Program Expenditures: 















Proposed 










Mi 


jyor's Budget 


Increase (Decrease) 




Fiscal Year 1999-2000 




Fiscal Year 
2000-2001 


From 
Origii 


1999-2000 


Program Expenditures 


Original 




Revised 


lal Budget 


Administration 


S 3,111,484 


S 


3,111,484 


S 


3,495,429 


S 


383,945 


Employee Relations 


2,275,027 




2,714,629 




3,109,612 




834,585 


Equal Employment Opportunity 


660,543 




660,543 




681,573 




21,030 


Health Service System 


6,497,780 




6,497,780 




6,233,333 




(264,447) 


Mgmt. & Employee Dvlpt. W/O 


519,785 




519,785 




434,662 




(85,123) 


Management Information Systems 


2,175,900 




2,175,900 




4,684,266 




2,508,366 


Ment Service System 


3,313,190 




3,314,190 




3,236,707 




(76,483) 


Workers Compensation 


59,897,105 




59,897,105 




65,201,648 




5,304,543 


Total Expenditures 


S 78,450,814 


s 


78,891,416 


s 


87,077,230 


S 


8,626,416 


Less Work Order Recoveries 


(62.375,844) 
S 16,074,970 


s 


(62,376,844) 
16,514,572 


s 


(67,289,374) 
19,787,856 




(4,913,530) 


Net Expenditures 


s 


3,712.886 



Board of Supervisors - Budget Analyst 



47 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 
AMENDMENT OF BUDGET ITEMS 

2000-01 



Department: HRD HUMAN RESOURCES (continued) 



DEPARTMENT PERSONNEL SUMMARY: 



The number of full-time equivalent positions budgeted for FY 2000-01 is 210.64 FTEs, which is 
1.29 FTEs more than the 209.35 FTEs in the original FY 1999-00 budget. The FTE allocations by 
program are as follows: 













Proposed 








Mayor's 


Budget 


Increase 


(Decrease) 




Fiscal Year 


1999-2000 


Fiscal Year 


From ] 


1999- 


2000 


Full Time Equivalents 


Original 


Revised 


2000- 


2001 


Origin 


al Bi 


idget 


Administration 


24.50 


24.50 




29.16 






4.66 


Employee Relations 


17.15 


17.15 




15.78 






(1.37) 


Equal Employment Opportunity 


8.99 


8.99 




8.98 






(0.01) 


Health Service System 


55.03 


55.03 




56.78 






1.75 


Mgmt. & Employee Dvlpt. W/O 


6.48 


6.48 




5.48 






(1.00) 


Management Information System 


16.92 


16.92 




16.05 






(0.S7) 


Merit Service System 


38.79 


38.81 




34.62 






(4.17) 


Workers Compensation 


41.49 


41.49 




43.79 






2.30 



Total 



209.35 



209.37 



210.64 



1.29 



DEPARTMENT REVENUES 

Department revenues have remained unchanged from the original FY 1999-00 budget of SO. The 
proposed General Fund support is S19,787,856, which is an increase of S3, 712, 886 or 23.10 percent over 
the 516,074,970 General Fund support for the FY 1999-00 original budget. 



Board of Supervisors - Budget analyst 



48 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 
AMENDMENT OF BUDGET ITEMS 

2000-01 



Department: HRD HUMAN RESOURCES (continued) 

Description 

The net increase in the Human Resources Department's expenditures from the FY 1999-00 
original budget is 58,626,416. The net increase is due to the following: 

• a 55,304,543 increase in Workers Compensation costs including: 

54,028,898 increase in Insurance costs, 

5 861,41 1 increase for the Workers Compensation 'Best Practices' Project, which is 
intended to provide a comprehensive, coordinated approach to claims 
administration for all City departments and to ensure consistency in this 
regard with the third-party administrator (TPA) (See also Comments 1, 2 
& 3 below.), 

S 1 63,576 increase in rental costs, 

5 80,367 increase pertaining to lower interdepartmental recoveries for associated 
Workers Compensation personnel costs, and 

5 1 70,291 increase pertaining to personnel cost of living adjustments and other 
miscellaneous expenses; 

• a 51,887,256 increase pertaining to the PeopleSoft Project, which is the City's Human Resource 
Management System, including the new benefits administration functionality and licensing costs. 
This increase will permit the replacement of the antiquated Membership Accounting System 
currently used to manage the over 1 12,000 members enrolled in the City's various health plans. This 
project will automate processing and maintenance of membership related events (e.g., enrollment, 
eligibility, premium calculations, and COBRA); 

• a 5939,073 increase in employee relations costs pertaining to the projected increase in employment 
contracts that are up for collective bargaining next year; and 

• a 5495,544 net increase in all other expenses including a cost of living adjustment for personnel 
costs. 



Personnel: The proposed budget includes an increase of 1.29 full-time equivalent (FTE) positions over 
the FY 1999-00 original budget. The proposed budget includes salaries and fringe benefits costs of 
514,688,170, a net increase of 5574,603 or 4.07 percent over the FY 1999-00 original budget. 

• The net increase in 1 .29 FTEs is the result of 3 new positions requested in the Mayor's budget (an 
increase of 2.25 FTEs), annualization of the previous year's new positions (an increase of 1.75 
FTEs), a net decrease due to position substitutions (a decrease of 1.77 FTEs), and a net decrease of 
0.94 in existing FTE positions due to the elimination of a 1237 Training Coordinator position and 
changes to attrition / salary savings. 



Board of Supervisors - Budget Analyst 



49 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 
AMENDMENT OF BUDGET ITEMS 

2000-01 



Department: HRD HUMAIV RESOURCES (continued) 

• The three proposed new positions are all related to the Workers Compensation program and include 
the following: 

6139 Senior Industrial Hygienist at a projected annual salary and fringe cost of 599,555 

8165 Workers Compensation Supervisor I at a projected annual salary and fringe cost of S73.895 

1374 Special Assistant XV at a projected annual salary and fringe cost of SI 12,337 



COMMENTS 

1 . The Workers Compensation 'Best Practices' Project is projected to save the City in the range of S25 
million (including savings to Muni) over the next five years by decreasing the rate of growth in 
claims cost according to the Department. The 'Best Practices' Project refers to the implementation of 
coordinated framework and intervention strategies based on generally accepted best practices of both 
public and private entities including: 

• Preventing injury, 

• Providing appropriate medical care, 

• Ensuring early intervention for disability management for injured workers, 

• Facilitating a safe and speedy return to work for injured workers through temporary- 
modi fied-duty work assignments, whenever possible, even though physical restriction may 
exist, 

• Providing training and education for all employees to achieve program success, and 

• Setting goals and objectives, measuring results, and continuously improving processes. 

2. According to the Department the work responsibilities of the requested new 1374 Special Assistant 
XV position related to the 'Best Practices' Project will be completed in approximately 3 years. The 
position will report directly to the Workers Compensation Council, which is comprised of the 
following members: Director of Human Resources (Chair), Controller, Mayor's Office Deputy Chief 
of Staff, City Administrator, Executive Director of the Retirement System, and City Attorney. 

3. The Budget Analyst notes that a recommendation included in the April 13, 2000 report of the 
Workers Compensation Council states that as a result of having both TPA and in-house claims 
management, 'the current split is more expensive because of duplication of efforts' and goes on to 
report Tillinghast-Towers Perrin's (the City's workers compensation consultant) recommendation 
that the City consider adopting either a complete TPA or in-house arrangement. 

4. The Mayor's budget provides an increase of S8,626,416. Our recommended reductions, which total 
SI, 370, 174, would still allow an increase of S7,256.242 or 9.25 percent in the Department's budget. 



Board of Supervisors - Budget Analyst 



50 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 

AMENDMENT OF BUDGET ITEMS 

2000-01 



Department: HRD - Human Resources 



Position/ Number A.nount 

Page Equipment 

Hsu Object Number From To. From T_o_ Savings 

Employee Relations 

2692 035 Other Current Expenses S 250,000 S 51,750 S 198,250 

Reduce to FY 1999-00 budget level adjusted by a cost of living factor 
for FY 2000-01. 

2692 040 Materials & Supplies 20,000 10,350 9,650 

Reduce to FY 1 999-00 budget level adjusted by a cost of living factor 
for FY 2000-01. 

2692 053 Judgements & Claims 158,250 158,250 






Reduce as Judgements and Claims funding is already budgeted in 
General City Responsibility. 



2692 081 Services of Other Departments 1,098,522 546,168 552.354 

Reduce to FY 1999-00 budget level adjusted by a cost of living factor 
for FY 2000-01. 



Health Service System 

2705 040 Materials & Supplies 275,789 21,218 254.571 

Reduce to FY 1999-00 budget level adjusted by a cost of living factor 
for FY 2000-01. 

Management Information System 

Professional and Specialized 
2698 027 Services 299,765 289,557 10.20S 

Reduce to FY 1999-00 budget level adjusted by a cost of living factor 
for FY 2000-01. 

2698 049 Other Materials & Supplies 50,000 50,000 

The Department has not adequately justified the requested 12 additional 
computer workstations budgeted at S50.000 or $4,167 per workstation 
because these requested 12 computer workstations would simply 
replace computers that are already technologically adequate for project 
system requirements. 



RnarrI of Supervisors - Budget Analyst 



51 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 

AMENDMENT OF BUDGET ITEMS 

2000-01 



Department: HRD - Human Resources 



Position/ 


Number 


Amount 


Equipment 






Number 


From To 


tram. 



Page 
Njh Object Number From Ifl Fjr_o_m la Savings 



Workers Compensation 

2702 00 1 Permanent Salaries S 2.113,552 S 2,004,908 

The recommended reduction in Pcrmanenl Salaries • Misc is the total of 
the following specific recommendations regarding individual 
classifications 



2716 001 Senior Industrial Hygienist 6139 75 0.00 59,259 59,259 

Disapprove one new Senior Industrial Hygienist position at an 
annualized salary and fringe benefit cost of $99,555 since the 
responsibility of this position substantially duplicates what should 
already be the responsibility of management in each of the City's 
respective departments. The Human Resources Department proposes this 
position to assist in implementation of a citywide safety oversight 
program. The objectives are to centralize citywide leadership for 
guidance and program development, report on goals, objeenves and 
results; and develop the necessary training to support the City's Workers 
Compensation philosophy and policies The aforementioned is already 
the responsibility of City department management, and this new position 
does not appear to provide offsetting cost savings Moreover, the April 
13. 2000 report of the Workers Compensation Council states that 
'[although safety oversight is a responsibility of the WCD [Workers 
Compensation Division], the accountability for safety program 
implementation should remain at the individual CCSF department level ' 
While the Department of Human Resources does not currently have any 
Industrial Hygienist positions, larger departments like Muni, Public 
Health and Parking & Traffic all have Industrial Hygienist and/or Safety 
personnel, totaling 24.5 FTEs for these three departments. Furthermore, 
the Department already has four SI 65 Workers Compensation Supervisor 
I positions and one 8166 Workers Compensation Supervisor II position. 
The ratio of supervisors to actual claims-paying staff is already low at 
one supervisor to six staff. We are however recommending approval of 
one of the three new positions requested for the Workers Compensation 
area, namely one Limited-Tenure 1374 Special Assistant XV at an annual 
salary and fringe benefit cost of SI 12.337. 



Board of Supervisors - Budget Analvst 



52 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 

AMENDMENT OF BUDGET ITEMS 

2000-01 



HRD - Human Resources 







Positioii- 


Number 


A 


Page 




Equipment 






Nfl. 


Object 


Number 


From T_o_ 


From 


2716 


001 Workers Compensation 
Supervisor I 


S165 


0.75 0.00 S 


43,! 



Aumimt 



Ifi Savings 

S OS 43,985 

Disapprove one new Workers Compensation Supervisor I position at an 
annualized salary and fringe benefit cost of S73.S95. The April 13, 2000 
report of the Workers Compensation Council stated that '[i]f current 
trends continue, claim costs will increase 10% to 15% a year for the next 
several years.' In the same report, the Council states '[gjrowth in workers 
compensation costs decreased substantially. Costs increased by 
approximately 4% this fiscal year, compared to growth of 15% the 
previous year.' Given this recent shift, in addition to increased 
departmental attention, including an increase in rerum-to-work 
opportunities in departments such as Muni, Police, Recreation & Park and 
Parking and Traffic, workers compensation costs appear to be gTOwing at 
a rate lower than what was actuarially projected. Moreover, the Council's 
report also states that as a result of having both a third-party administrator 
(TPA) and in-house claims management, 'the current split is more 
expensive because of duplication of efforts.' Tillinghast-Towers Perrin is 
the City's workers compensation consultant and has been paid a total of 
S298.900 during the current fiscal year according to the Department. 
Tillinghast-Towers Perrin has recommended that the City consider 
adopting either a complete third-parry administrator (TPA) or an in-house 
arrangement. In light of these findings, adding this new Workers 
Compensation Supervisor I position at this time appears unwarranted. 
Furthermore, the Department already has four 8165 Workers 
Compensation Supervisor I positions and one 8166 Workers 
Compensation Supervisor II position. The ratio of supervisors to actual 
claims-paying staff is already low at one supervisor to six staff. We are 
however recommending approval of one of the three new positions 
requested for the Workers Compensation area, namely one Limited- 
Tenure 1374 Special Assistant XV at an annual salary and fringe benefit 
cost of SI 12.337. 

2716 001 Attrition Savings -Misc. 9993M (3.45) (3.50) (182.196) (187,596) 5,400 

Increase attrition savings to actual FY 1999-00 expenditure levels. 

013 Mandatory Fringe Benefits 551,735 5:3.488 2s. I- - 

Corresponds to reducnon in salaries. 

001 Special Assistant XV 1374N 0.75 0.00 67,125 

Special Assistant XV 1374L 0.00 0.75 67,125 (67.125 1 

Approve one new 0.75 FTE as 'L or Limited Tenure to assist the City in 
its workers compensation efforts. Based on the Department's 
representation that the work responsibilities related to this position will 
be completed in approximately three years, this position should be made 
an 'L' or Limited-Tenure position. 



Total Recommended Reductions S 1,370.174 

■n i _ r c- : , 1.-...J.... i «•*■«.« vU 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 
AMENDMENT OF BUDGET ITEMS 

2000-01 



DEPARTMENT: 



MYR Mayor 



Financial Data: 

The Mayor's proposed $66,902,237 budget for FY 2000-01 is 54,895,942 or 7.90 percent more 
than the original FY 1999-2000 budget of S62, 006,295. The net increase from the revised FY 1999-2000 
budget is 53,018,61 1 or 4.73 percent. 



SUMMARY OF PROGRAM EXPENDITURES: 



Proposed 









Mayor's Budget 


Increase (Decrease) 




Fiscal Year 


1999-2000 


Fiscal Year 
2000-2001 


From 
Origii 


1999-2000 


Program Expenditures 


Original 


Revised 


lal Budget 


Assistance & Neighborhood Outreach S 


1,631.451 


S 1.531,451 


S 1,573,437 


S 


(58,014) 


City Administration 


4,254,872 


4.674.363 


5,207.246 




952,374 


Community Development 


26,991.788 


28,851.433 


33,130,000 




6,138,212 


Criminal Justice 


4.188,872 


3,887,067 


3,996,618 




(19: 


Finance & Legislative Affairs 


840,392 


S40.392 


832,823 




(7.569) 


Grants for the Arts 


14,230,867 


14.230,867 


15,029,927 




799.060 


Neighborhood BeautificaUon 


679,128 


679.128 


727.852 




4S 


Office of Emergency Service 


578,950 


578,950 


657,822 




78,872 


Waterfront Transportation 


- 


- 


- 




- 


Moscone Expansion Project 


5,409,975 


5,409,975 


5,746.512 




336,537 


Gay/Lesbian Community Center 


3.200.000 


3.200.000 


- 




(3.200,000) 


Total Expenditures S 


62,006.295 


S 63,883.626 


S 66.902.237 


S 


4,891 


Less Work Order Recoveries 


(956.797) 


(1.080.384) 


(1.371.159) 




(414.362) 


Net Expenditures S 


61,049,498 


S 62,803.242 


S 65.531,078 


s 


4,481.580 



Board of Supervisors - Budget Analyst 



54 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 

AMENDMENT OF BUDGET ITEMS 

2000-01 



Department: MYR M4YOR (continued) 

DEPARTMENT PERSONNEL SUMMARY: 

The number of full-time equivalent positions budgeted for FY 2000-01 is 148.78 FTEs, which is 
3.51 FTEs more than the 145.27 FTEs in the original FY 1999-2000 budget. The FTE allocations by 
program are as follows: 



Full Time Equivalents 

Assistance & Neighborhood Outreach 
City Administration 
Community Development 
Criminal Justice 
Finance & Legislative Affairs 
Grants For the Arts 
Neighborhood Beautification 
Office of Emergency Service 











Proposed 






Mayor 


s Budget 


Increase (Decrease) 


Fiscal Year 1999-2000 


Fiscal Year 


From 1999- 


•2000 


Original 


Revised 


2000-2001 


Original Budget 


15.23 


15.23 




16.48 




1.25 


31.28 


31.28 




31.75 




0.47 


71.00 


71.00 




72.00 




1.00 


6.94 


6.94 




7.38 




0.44 


9.21 


9.21 




8.42 




(0.79) 


4.00 


4.00 




4.75 




0.75 


2.00 


2.00 




2.00 




- 


5.61 


5.61 




6.00 




0.39 



Total 



145.27 



145.27 



148.78 



3.51 



Department Revenues 

Department revenues have increased by $7,040,378 or 13.75 percent. General Fund support has 
decreased by 52,558,798 or 26.0 percent. The majority of the increase in revenues relates to increases 
from Federal grants ($4,580,852 for Community Development) and increases in the Hotel Room Tax 
($882,942) for the Grants for the Arts. 

Description 

The major increases in the Mayor's Office budget for FY 2000-01 include (1) an increase of 
$314,340 for City Administration (1.2% increases over FY 1999-00 budget), (2) an increase of $336,537 
(6.2% increase over FY 1999-00 budget) for Low Income Housing, (3) $799,060 (5.6% increase over 
FY 1999-00 budget) for Grants for the Arts, and (4) $4,402,154 (16.3% increase over FY 1999-00 
budget) for Community Development. 

Additionally, the proposed budget includes one new 1363 Special Assistant rV (0.75 FTE) for 
the Film Office, one new 1364 Special Assistant V (0.75 FTE) for Assistance & Neighborhood 
Outreach, and one new 1367 Special Assistant Vin (0.75 FTE) for Grants for the Arts. 



Board of Supervisors - Budget Analyst 



55 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 

AMENDMENT OF BUDGET ITEMS 

2000-01 



Department: MYR MAYOR (continued) 



COMMENT 



The Mayor's budget provides an increase of S4, 895,942. Our recommended reductions, which 
total SI 0,8 10, would still allow an increase of S4,885,132 or 7.88 % in the Department's budget. 



Board of Supervisors - Budget Analyst _ ~ 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 

AMENDMENT OF BUDGET ITEMS 

2000-01 



►epartment: Mayor's Office 



Page 

No. Object 



Position/ 

Equipment 

Number 



Number 
From To. 



Amount 
From To 



Savings 



HE A City Administration - Work Order 

757 001 Permanent Salaries - Misc 



S478.298 S468.732 



*The recommended reduction in Permanent Salanes - 
Misc is the total of the following specific 
recommendations regarding individual classifications. 



780 001 Attrition Savings - Misc. 



9993M 



Add Attrition Savings at an estimated 2 percent. 
Currently, no Attrition Savings are budgeted. 



(9,566) 



S9.566 



757 013 Mandatory Fringe Benefits 



113,764 112,520 



1.244 



Corresponds to reduction in Permanent Salanes - 
Misc. 



Total Recommended Reductions 



S10.S10 



Board of Supervisors - Budget Analvst 



57 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 
AMENDMENT OF BUDGET ITEMS 

2000-01 



DEPARTMENT: REG ELECTIONS 



Financial Data: 

The Department of Elections' proposed SIO.051,234 budget for FY 2000-01 is S5.517.716 or 
121.71 percent more than the original FY 1999-2000 budget of S4.533.518. The net increase from the 
revised FY 1999-2000 budget is S3.227.619 or 47.30 percent. 



Summary of Program Expenditures: 

Proposed 
Mayor's Budget Increase (Decrease) 
Fiscal Year 1999-2000 Fiscal Year From 1999-2000 



Program Expenditures Original Revised 2000-2001 Original Budget 

Elections S 4,533.518 S 6,823,615 S 10,051,234 S 5,517.716 

Less Work Order Recoveries (78.1 m i78.1151 (91.665) (13.550) 

Net Expenditures S 4.455,403 S 6,745,500 S 9,959,569 S 5,504,166 

Department Personnel Summary: 

The number of full-time equivalent positions budgeted for FY 2000-01 is 40.72 FTEs, which is 
8.76 FTEs more than the 31.96 FTEs in the original FY 1999-2000 budget. The FTE allocations by 
program are as follows: 

Proposed 
Mayor's Budget Increase (Decrease) 
Fiscal Year 1999-2000 Fiscal Year From 1999-2000 



Full Time Equivalents Original Revised 2000-2001 Original Budget 

Elections 31.96 48.28 40.72 S.76 

Total 31.96 48.28 40.72 8.76 



Board of Supervisors - Budget analyst 



58 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 

.AMENDMENT OF BUDGET ITEMS 

2000-01 



Department: REG ELECTIONS (continued) 



DEPARTMENT REVENUES 



Department revenues have increased by S352,590 or 99.7 percent and General Fund support of 
59,253,169 has increased by 55,151,576 or 125.6 percent. Revenues are increasing in order to purchase 
and implement the new optical scan vote count system as well as to provide for additional costs to 
establish a proactive outreach program to educate voters and answer voter questions about changes in 
election procedures related to the change from a city-wide at-large election to district elections for the 
Board of Supervisors' November 2000 election. 



DESCRIPTION 

The Elections Department is requesting the addition of one 1376 Special Assistant XVII at 0.75 
FTE for FY 2000-01 resulting in a 566,126 increased salary expense for this position. This position, 
which would be hired as the Deputy Registrar of the Department of Elections, would annualize to 1 .0 
FTE with an annual salary at top step of 5104,062. Additionally, the department is requesting an 
increase of 7.37 FTE (5346,387) in Temporary Salaries, from 18.02 FTE (S846,576) in FY 1999-00 to 
25.39 FTE (51,192,963) in FY 2000-2001. The majority of this increase in Temporary Salaries 
(5325,000) is requested for the Election Services Project that is intended to ensure successful 
implementation of the new optical scan vote count system. 



The major items making up the expenditure increase requested of S5,5 1 7,716 include: 
S3,249,739 (58.9%) for the purchase of the new optical scan vote count system. 
51,003,416 (18.2%) for the Election Services Project that is intended to ensure successful 
implementation of the new optical scan vote count system. 

5969,013 (17.6%) for additional expenditures related to the ballots for the new optical scan vote 
count system. 



Board of Supervisors - Budget Analyst 5 9 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 

AMENDMENT OF BUDGET ITEMS 

2000-01 



Department: REG ELECTIONS (continued) 



COMMENTS 

1 . The FY 2000-01 budget includes expenditures for the November 2000 general election and for a 

December 2000 run-off election. The original FY 1999-00 budget included expenditures for the 
November 1999 election and the March 2000 election. A Supplemental Appropriation for 
51,482,730 was approved in March 2000 to provide the Department with additional funding to 
cover overexpenditures resulting primarily from the requirement for a December 1999 Mayoral 
and District Attorney run-off election In total, there were three elections in FY 1999-00. For FY 
2000-01, two elections are scheduled. 

2. The Mayor's budget provides an increase of S5, 5 1 7.716. Our recommended reductions, which 

total SI 10,426, would still allow an increase of 55,407,290 or 1 19.27% in the Department's 
budget. 



Board of Supervisors - Budget Analyst . 6 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 

AMENDMENT OF BUDGET ITEMS 

2000-01 



Department: REG - Elections 



Position/ Number Amount 

Page Equipment 

Njl Object Number From To. From To Savings 

2791 001 Permanent Salaries - Misc. S 1,007,095 S940,969 * 

* The recommended reduction in Permanent Salaries-- Misc. 
is the total of the following specific recommendations 
regarding individual classification. 

2794 001 Special Assistant XVII 1376N 0.75 66,126 66,126 






To disapprove the addition of a 0.75 Special Assistant XVII. The 
Department has not justified the addition of one new Deputy Registrar 
position which has an annual salary of $104,062 for the Department of 
Elections. In addition to the Director of Elections, the Department 
currently has four Division Managers and 1 permanent staff. We are, 
however, recommending approval of 7.00 new FTE for temporary 
positions, totaling $328,857, resulting in 25.02 FTE total temporary 
positions. Most of the new temporary positions (6.92 FTE) are 
designated for the Election Services Project which will implement the 
new optical scan vote count system. The Budget Analyst does not 
believe the addition of a second full-time high-level position with job 
duties that are similar to those of the Director of Elections is justified. 
The Department has stated that a Deputy Director is needed to oversee 
the operation and administration of the department and further states 
that the new Deputy is needed "if something happens to the 
Department of Elections Director, [since] no one is trained to step into 
the position and effectively run and certify an election. We disagree 
with this justification. The Director of Elections can deputize one of 
the four Division Managers during an election so that there is a Deputy 
if "something happens to the Department of Elections Director." 

Additionally, the new optical scan vote count system, which is being 
purchased at a cost of over $3.2 million, is intended make the election 
process less staff intensive in future years. Although the 
implementation of the new system may require some additional focus 
by the Director of Elections in the current year, as noted above, the 
current budget includes temporary salaries which total ^1 12.000 to 
provide 2400 hours of Special Assistant XVI-level staff for project 
management related to the implementation of the new system. 



Roard of Supervisors - Budge! Anajvst 



61 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 

AMENDMENT OF BUDGET ITEMS 

2000-01 



Department: REG - Elections 



Page 

JViL Object 

2791 005 Temporary Salaries 



Position/ Number 

Equipment 
Number From Iq 

18.47 18. 



Reduce to reflect acrual salary rates of 1000 hours a S2U 62 and 
61 1 hours @S 19.37 as the department reports is needed for the 
Voter Information Pamphlet Initiative 



Amount 

trum T_fl Savinps 

S867.963 S850,433 SI 7,530 



2791 013 Mandatory Fringe Benefits 

Corresponds to the reduction in salaries. 



258.777 240,007 18,770 



2796 6061 Data Processing Equipment 



3.249,739 3.241,739 8,000 



To reduce the cost of the vote count system to the 
total of the contract award granted to Election 
Systems and Software, Inc., inclusive of sales tax 



Total Recommended Reductions 



S110.42r- 



Board of Supervisors - Budget Analyst 



62 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 
AMENDMENT OF BUDGET ITEMS 

2000-01 



DEPARTMENT: 



RET Retirement system 



Financial Data: 

The Retirement System's proposed $13,682,067 budget for FY 2000-01 is $977,442 or 7.69 
percent more than the original FY 1999-2000 budget of $12,704,625. The net increase from the revised 
FY 1 999-2000 budget is $977,442 or 7.69 percent. 



Summary of Program Expenditures: 



Program Expenditures 

Administration 

Employment Deferred Comp Plan 

Investments 

Retirement Services 



Total Expenditures 



Fiscal Year 1999-2000 


Mayor's Budget 
Fiscal Year 
2000-2001 


Proposed 

Increase (Decrease) 

From 1999-2000 


Original 




Revised 


Original Budget 


$ 867,229 

150,000 

1,212,491 

10,474,905 


$ 


867,229 
150,000 

1,212,491 
10,474,905 


$ 


896,709 

397,299 

1,298,623 

11,089,436 


$ 29,480 

247,299 

86,132 

614,531 


$ 12,704,625 


$ 


12,704,625 


$ 


13,682,067 


$ 977,442 



Department Personnel Summary: 



The number of full-time equivalent positions budgeted for FY 2000-01 is 71.70 FTEs, which is 
3.36 FTEs more than the 68.34 FTEs in the original FY 1999-2000 budget. The FTE allocations by 
program are as follows: 

Proposed 
Mayor's Budget Increase (Decrease) 
Fiscal Year 1999-2000 Fiscal Year From 1999-2000 

Full Time Equivalents 

Administration 

Employee Deferred Compensation 

Investments 

Retirement Services 



Original 


Revised 


2000- 


2001 


Original Budget 


6.00 


6.00 




6.00 


. 


1.00 


1.00 




1.00 


- 


12.29 


12.29 




12.84 


0.55 


49.05 


49.05 




51.86 


2.81 



Total 



68.34 68.34 



71.70 



3.36 



BOARD OF SUPERVISORS - BUDGET ANALYST 



63 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 
AMENDMENT OF BUDGET ITEMS 

2000-01 



Department: RET RETIREMENT SYSTEM (continued) 

DEPARTMENT REVENUES 

Department revenues have increased by $730,143 or 5.75 percent and General Fund support 
increased from zero to $247,299. 

DESCRIPTION 

The proposed Retirement System Budget for FY 2000-01 has increased by 1977,442. Major 
increases include the following: 

1. The budget for Salaries and Benefits has increased S324.594 or 6.26 percent from S5. 184,713 in FY 
1999-00 to $5,509,307 in FY 2000-01 . 90 percent of this increase is represented by the department's 
request for 5.25 new FTE positions totaling $291,536 in salaries and fringe benefits, with the 
remainder representing annual salary increases and miscellaneous changes. New positions include: 

• 1 .5 new FTE for Microphoto/lmaging Technicians to continue the conversion of hard copy 
documents to computer discs. The annualized cost for each of these 2 new FTE for Permanent 
Salaries and Fringe Benefits is S4 1,765 at the top step. 

• 1.5 new FTE for Assistant Retirement Analysts to implement the pre-tax buyback option to 
retirement system members. The annualized cost for each of these 2 new FTE for Permanent 
Salaries and Fringe Benefits is $6S,370 at the top step. 

• 0.75 new FTE for a Senior Administrative Analyst to provide functional and procedural 
oversight of all processing tasks associated with retirement services. The annualized cost for this 
new position for Permanent Salaries and Fringe Benefits is $84,747 at the top step. 

• 0.75 new Security Analyst to implement the Retirement Board direction that alternative 
investments be increased from a current target of 9 percent to 12 percent. The annualized cost for 
this new position for Permanent Salaries and Fnnge Benefits is S47.060 at the top step. 

• 0.75 new Secretary for the Investment Division to maintain all files relating to limited 
partnership investments over the life of the partnership. This position is being added by the 
Mayors Office as a Technical Adjustment. The annualized cost for this new position for 
Permanent Salaries and Fringe Benefits is S5 7,748. 

2. Non-Labor costs have increased by S332,737 or 21.5 percent from $1,550,346 to SI, 883,083, 
primarily related to an increase of S325.000 for outside legal services related to final compensation 
issues related to retirement benefits. 



Board of Supervisors - Budget Analyst g ^ 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 

AMENDMENT OF BUDGET ITEMS 

2000-01 



Department: RET RETIREMENT SYSTEM (continued) 

3. The Retirement's request for Equipment in FY 2000-01 is SI 19,667 for additional and/or 
replacement computer equipment. This is S209, 168 or 63.6 percent decrease from the FY 1999-00 
budget of $328,835. 

4. The budget for Services of Other Departments has increased in FY 2000-01 by $529,279 or 9.4 
percent from $5,640,731 in FY 1999-00 to $6,170,010 in FY 2000-01. Of the $529,279 increase in 
Services of Other Departments, $485,352 or 92 percent represents increased services from the City 
Attorney and Department of Telecommunications and Information Services. 



Comments 

1. Based on the justification provided, we are recommending approval of 4.50 FTEs of the 5.25 
requested new positions shown on the prior page. We are recommending disapproval of 0.75 FTE, a 
Senior Administrative Analyst as explained on the following page. 

2. The Mayor's budget provides an increase of $977,442. Our recommended reductions, which total 
$323,980, would still allow an increase of $653,462 or 5.1% in the Department's budget. 



Board of Supervisors - Budget Analyst . g 5 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 

AMENDMENT OF BUDGET ITEMS 

2000-01 



Position/ 


Number 


Amount 


Equipment 






Number 


From Ifl 


From 



Department: RET - Retirement System 

Page 
No. Object Number From Ifi From Ifl Savings 

Employee Deferre d Compensation Plan (EDO 

Retireme nt Services (FDD) 

2801 001 Permanent Salaries - Misc. $ 2.585.543 S 2. 53?. "16 

'The recommended reduction in Permanent 
Salaries - Misc. is the total of the following 
specific recommendations regarding individual 
N classifications. 

2805 001 Senior Administrative Analyst 1823N 0.75 0.00 51,827 51,827 

The department has not adequately justified 
this position which has an annual salary of 
$67,260. The department states that this 
position will be used to provide functional and 
procedural oversight of all processing tasks 
associated with retirement services. The 
Budget Analyst notes that the department 
presently has 2 Senior System Accountants 
Additionally, we are recommending approval 
of 4.50 of the requested 5.25 new positions as 
listed on the prior page. 

2801 005 Temporary Salanes-Misc 219.890 99.364 120.526 

Reduce temporary salaries to reflect transfer 
of four positions funded in FY 1999-00 in 
Temporary Salaries to Permanent Salanes. 
The proposed reduction of $120,526 
represents the difference between the full year 
funding for these positions and the amount 
that the department had already reduced 
Temporary Salaries by of $54,291 . 



Board of Supervisors - Budpet Analyst 



66 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 

AMENDMENT OF BUDGET ITEMS 

2000-01 



Department: RET - Retirement System 




Number 
From Iq 


S 


Amount 

From 

679,024 S 


654,702 


S 




Page 
No. Object 

801 013 Mandatory Fringe Benefits 


Position/ 

Equipment 

N'umber 


Savings 

24.3:: 



Corresponds to reductions in Temporary 
Salaries. 



027 Professional & Specialized Services 



901,100 



791,100 



110.000 



The proposed budget includes request for 
$150,000 for actuarial services and $300,000 
for outside medical expenses. During FY 1999- 
00, the Department will expend approximately 
$316,000 for these items. Our proposed 
reduction of $1 10.000 for these two items will 
still leaves the department with 5340,000, 
which is $24,000 more than will be spent during 
FY 1999-00. 



081 Services of Other Department 



5,853,890 



5,836.585 



17,305 



The proposed budget includes $59,800 for 
Workers Compensation Costs. However, the 
Department of Human Resources estimates 
that only $42,495 is needed for FY 2000-01. 
The revised budget of $42,495 is still greater 
than the Department of Human Resources 
estimated expenditures for Workers 
Compensation in FY 1999-00 of $41,754. 



Total Recommended Reductions 



323.980 



Board of Supervisors - Budget Analyst 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 

AMENDMENT OF BUDGET ITEMS 

2000-01 



DEPARTMENT: 



TTX Treasurer/Tax Collector 



Financial Data: 

The Treasurer/Tax Collector's proposed 520,877,545 budget for FY 2000-01 is S4.732.166 or 
29.31 percent more than the original FY 1999-2000 budget of SI 6, 145.379. The net increase from the 
revised FY 1999-2000 budget is S4.732.166 or 29.31 percent. 



Summary of Program Expenditures: 



Program Expenditures 

Department Management 

Investigations 

Legal Service 

Tax Assessment 

TTX-Business Tax 

TTX-Delinquent Revenue 

TTX-Investment 

TTX -Property Tax/Licensim 

TTX-Tax Payer Assistance 

TTX-Treasury Collector 



Fiscal Year 1999-2000 



Original 



Revised 



Mayor's Budget 
Fiscal Year 
2000-2001 



Proposed 

Increase (Decrease) 

From 1999-2000 

Original Budget 



S 1,762,999 S 1.762,999 S 



520,051 


508,023 


496.867 


494,017 


4,837,301 


2 9,969 


3,309,742 


3,183.222 


_ ;:.070 


712.070 


1,615,769 


1.834.807 


841,243 


770.935 


2.049.337 


2.049.337 



3.801,194 S 

532,940 

465,014 

-19 

3.284.254 

756,556 

953 

874,026 

2,165.289 



2,038,195 



12,889 

(31,853) 

•018 

(25,488) 

-4,486 

127,184 

32.783 

115.952 



Total Expenditures S 16,145,379 S 16.145.3~9 S 20.877,545 S 2.166 

Less Work Order Recoveries (1,172.292) (1.172.292 ) (1.260,741) (88.449 ) 

Net Expenditures S 14.973.087 S 14.973.087 S 19.616.804 S 4,643 



Board of Supervisors - Budget analyst 



68 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 

AMENDMENT OF BUDGET ITEMS 

2000-01 



Department: TTX TREASURER/TAX COLLECTOR (continued) 



DEPARTMENT PERSONNEL SUMMARY: 



The number of full-time equivalent positions budgeted for FY 2000-01 is 182.89 FTEs, which is 
0.16 FTEs more than the 182.73 FTEs in the original FY 1999-2000 budget. The FTE allocations by 
program are as follows: 













Proposed 








Mayor's 


Budget 


Increase (Decrease) 




Fiscal Year 


1999-2000 


Fiscal Year 


From 1999- 


■2000 


Full Time Equivalents 


Original 


Revised 


2000- 


■2001 


Original Budget 


Department Management 


17.23 


17.23 




16.78 




(0.45) 


Legal Service 


5.76 


5.76 




5.76 




- 


Tax Assessment 


7.77 


7.77 




7.13 




(0.64) 


TTX - Tax Payer Assistance 


11.20 


11.20 




11.87 




0.67 


TTX - Business Tax 


46.14 


46.14 




45.47 




(0.67) 


TTX - Delinquent Revenue 


44.55 


44.55 




44.62 




0.07 


TTX - Investment 


5.45 


5.45 




5.45 




- 


TTX - Property Tax/Licensing 


12.40 


12.40 




12.40 




- 


TTX - Treasury 


32.23 


32.23 




33.41 




LIS 



Total 



182.73 



182.73 



182.89 



0.16 



DEPARTMENT REVENUES 

Department revenues have increased from S3, 144, 174 to S3,479,080 for a total of S3 34,906 or 
9.81 percent and General Fund support has increased from SI 1.828,913 to S16,137,724 for a total of 
S4, 308, 811 or 36.4 percent. Approximately S140,000 of the increased revenues relate to increases 
expected on interest on City cash balances and 5163,000 relates to fees received for the processing of 
passport applications for the U. S. Department of State, which is a service enhancement in FY 2000-01 . 



DESCRIPTION 

1 . The Department is requesting the addition of one new Principal Account Clerk a' 0.75 FTE for 

FY 2000-01, resulting in a $38,367 increased salary expense for this position. This position, which is 



Board of Supervisors - Budget Analyst 



69 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 

AMENDMENT OF BUDGET ITEMS 

2000-01 



Department: TTX TREASURER/TAX COLLECTOR (continued) 

intended to staff the new passport application function, would annualize to 1.0 FTE with an annual 
salary at the top step of $50,960. 

2. The Department has two major initiatives planned for FY 2000-01 that account for $3.2 million 

of the $4.7 million increase in the budget request in the current year. Additionally, the Business Tax 
Division has an increase of $1,124,858 to a total of $2,284,354 for the services of the Department of 
Technology and Information Services. 

• The FY 2000-01 budget allocates $2. 1 million to professional and specialized services for the 
acquisition, customization, and implementation of a new Business Tax System. 

• The Department has an increase in services from the City Attorney of $1.1 million related to 
anticipated pending litigation for the lawsuits filed by seven corporate plaintiffs against the City 
pertaining to the imposition of the City's Business Taxes. In May 2000, a summary judgement 
decision in favor of two of the plaintiffs was handed down by Superior Court, which the City plans 
on appealing. In FY 1999-00, the City incurred an additional $972,212 related to this same litigation. 

COMMENT 

The Mayor's budget provides an increase of $4,732,166. Our recommended reductions, which 
total $179,699, would still allow an increase of $4,552,467 or 28.20% in the Department's budget. 



Board of Supervisors - Budget analyst 7 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 

AMENDMENT OF BUDGET ITEMS 

2000-01 



Department: Treasurer/Tax Collector 



Page 

No. Object 



Position/ 

Equipment 

Number 



Number 
From To 



Amount 
From To 



Savings 



CT Treasury 



819 001 Permanent Salaries 

* The recommended reduction in Permanent Salaries- 
Misc. is the total of the following specific 
recommendations regarding individual classification. 



$1,344,317 51,339,671 



834 001 Attrition Savings - Misc. 



9993M 



0.1 



Attrition Savings— Misc. has been increased by S4,646 to offset the 
effect of the Department's upward substitution of a 4321 Cashier II 
position to a 1632 Senior Account Clerk, that would result in increased 
salary and fringe benefit costs made during the past year, without 
budgetary approval by the Board of Supervisors. This recommendation 
will enable the Department to continue to maintain the existing filled 
position, at the higher salary and fringe benefit cost, but will not result in 
additional expenditure for the Department because an offsetting amount 
will be eliminated from the budget by this increase in attrition savings. 



(4,646) 



4,646 



819 013 Mandatory Fringe Benefits 

Corresponds to the reduction in salaries. 



378,928 377,720 



1.208 



CM Investment 



820 040 Materials and Supplies Budget 



24,350 



To reduce the budget by the increase that the Department has identified as estimated 
expenses that may be incurred for software or other costs related to changing to a new 
bank. The Treasurer has put the full range of banking business for the City and County 
of San Francisco out to competitive bid and the award of the City's banking business 
will be made during 2000-01. It is the Budget Analyst's opinion that all costs related to 
any changes in the award of the City's banking business should be budget neutral or 
result in a benefit to the City, with any costs related to the change in business either 
borne by the institution receiving the business or offset by reductions in other costs or 
increases in revenues related to the change. 



6,500 



17.850 



Board of Supervisors - Budget Analvst 



71 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 

AMENDMENT OF BUDGET ITEMS 

2000-01 



Department: Treasurer/Tax Collector 



Page 

jViL Object 



Position/ 

Equipment 

Number 



Xuoiber 



From To 



\MM.uirir 
From To 



Savings 



FCN Property Tax/Licensing 



2822 027 Professional & Specialized Services 



To reduce to actual 1999-00 expenditure level adjusted by a cost of 
living factor for 2000-01. 



2822 035 Other Current Expenses 



S24.906 S20.600 54,306 



142,650 127,650 15,000 



Reduce the amount increased for Official Advertising from S 1 20,000 to 
$105,000, which is the amount of the actual 1999-00 expenditure 
adjusted by a cost of living factor for 2000-01 . The recommended 
amount is still $59,634 more than the current budget amount. 



FCO Business Tax 

2824 023 Employee Field Expense 



10,380 



2,000 8,380 



To reduce to actual 1999-00 expenditure level 
adjusted by a cost of living factor for 2000-0 1 . 



2824 



027 Professional Services 

Department has plans to purchase 1 new laptop computers for analysts 
in this Division. Computers are budgeted at S3, 000. This amount has 
been reduced to $2,250 per computer, with a savings of $750 for each of 
the 10 computers, or $7,500. Additionally, the Department has plans to 
upgrade from Office 97 to Office 2000 (computer software), but has not 
provided adequate justification for why the funcnonality of Office 97 is 
not sufficient for current operations of the Division. The budget has 
been reduced by $1 1,500 related to this planned upgrade. 



70,000 51,000 19,000 



Board of Supervisors - Budget Analy st 



72 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 

AMENDMENT OF BUDGET ITEMS 

2000-01 



Department: Treasurer/Tax Collector 



Page 

No. Object 

2824 035 Other Current Expense 



Position/ 
Equipment 


Number 


Amount 




Number 


From To 


From Tn 


Savings 






$47,541 S42,200 


S5.341 



To reduce to actual 1999-00 expenditure level adjusted 
by a cost of living factor for 2000-01. 



business Tax Litigation 

1824 081 Services of Other Departments 



To reduce the City Attorney-Legal Services related to anticipated 
pending litigation for the lawsuits filed by corporate plaintiffs against the 
City pertaining to the imposition of the City's Business Taxes to the 
itemized estimate provided by the City Attorney's office. 



CQ Taxpayer Assistance 



826 005 Temporary Salaries— Misc. 



Reduce the temporary salaries to actual 1999-00 expenditure level, and 
provide a 10% increase for expenditures for 2000-01. 



1,058,946 1,038,182 20,764 



58,117 



15,000 43,117 



826 013 Mandatory Fringe Benefits 

Corresponds to the reduction in salaries. 



144,207 140,326 



3,881 



826 035 Other Current Expense 

To reduce to actual 1999-00 expenditure level 
adjusted by a cost of living factor for 2000-0 1 . 



17,284 



9,000 



8,284 



CS Delinquent Revenue 



827 



035 Other Current Expense 

To reduce to actual 1999-00 expenditure level 
adjusted by a cost of living factor for 2000-0 1 . 



Board of Supervisors - Budget Analyst 



57,013 45,200 11,813 



73 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 

AMENDMENT OF BUDGET ITEMS 

2000-01 



Department: Treasurer/Tax Collector 

I 

Position/ Number Amouni 

Page Equipment 

No* Object Number From Iq From J_q Savings 

FEG Departmental Management 

2830 001 Permanent Salaries SI, 181.430 SI. 171,026 

* The recommended reduction in Permanent Salanes—Misc. is the total 
of the following specific recommendations regarding individual 
classification. 



2842 001 Attrition Savings - Misc. 9993M 1.22 1.37 (85,200) (95,604) 10,404 

Attrition Savings— Misc. has been increased by $10,404 to offset the 
effect of the Department's upward substitution of a 1024 Administrator- 
Supervisor position to a 1043 Engineer-Senior, that would result in 
increased salary and fringe benefit costs made during the past year, 
without budgetary approval by the Board of Supervisors This 
recommendation will enable the Department to continue to maintain the 
existing filled position, at the higher salary and fringe benefit cost, but 
will not result in additional expenditure for the Department because an 
offsetting amount will be eliminated from the budget by this increase in 
attrition savings. 

2830 013 Mandatory Fringe Benefits 267.150 264.445 2,705 

Corresponds to the reduction in salaries. 

2830 021 Travel 6,000 3,000 3,000 

To reduce to actual 1999-00 expenditure level 
adjusted by a cost of living factor for 2000-01 . 



Board of Supervisors - Budget Analyst 74 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 

AMENDMENT OF BUDGET ITEMS 

2000-01 



Department: Treasurer/Tax Collector 



Position/ Number Amount 

Equipment 

Object Number From To From To Savings 

027 Professional & Specialized Services S2,162,050 52,162.050 * 

Reserve the budgeted amount of S2, 162,050 for the replacement of the Business Tax System until such 
time as detailed information is submitted to the Board of Supervisors as to a firm bid and contract, and a 
formalized project plan to ensure that the project is budgeted for an appropriate amount and to ensure that 
the expenditures are budgeted in the proper budget year. The Department has a recommendation prepared 
in November 1999 by a consultant of the Department of Telecommunications and Information Services 
(DTIS) that has identified a potential replacement system for the City's Business Tax System. The 
recommendation suggests the acquisition, conversion and customization of a system that was developed by 
and is currently being used in Seattle, Washington. The system, which the Department has stated is in the 
public domain, would need to be convened to an Oracle database (which is the City's database-of-choice) 
and would need customization since it is estimated to provide about 65 percent of the functionality desired 
by the Department This customization has been preliminarily scoped. However an in-depth business 
analysis and specifications need to be developed. 

The total budgeted amount of S2, 162.050 is the estimated cost to obtain the system from Seattle, convert it 
to Oracle and customize it, usmg contract resources. The recommendation includes a project plan showing 
that the development and implementation of the new system is a two-year project with costs divided into 
two years— 5861,750 in the first year and S 1.300,300 in the second year. A revised project plan prepared in 
May 2000 shows the work bemg performed in FY 2000-01 and 2001-02. Departmental staff have indicated 
that because of the critical need for this new system, they intend on compressing the process and 
completing as much of the project in FY 2000-01 as possible. The Department stated that they have had 
discussions with DTIS and that DTIS has stated that they concur that the time-line for the project can be 
compressed. 

The Budget Analyst questions the ability of the Department to compress the development and 
implementation time for this project at the same cost given the shortage of Informanon Systems resources 
in the Bay Area. The Budget .Analyst recommends that the budget for this project be reserved until such 
time as there is a firm bid and contract and a formalized project plan to ensure that the project is budgeted 
for an appropriate amount and to ensure that the expenditures are budgeted in the proper budget year, and 
that all related information be presented to the Board of Supervisors for review and approval. 



Total Recommended Reductions S179.f> l > l) 



Total Recommended Reserves S 2.162.050 



Board of Supervisors - Budset Analyst ' *5 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 

AMENDMENT OF BUDGET ITEMS 

2000-01 



department: gen gener vl city responsibility 

Financial Data: 

The General City Responsibility's proposed $297,952,269 budget for FY 2000-01 is 
529,568,104 or 9.03 percent less than the original FY 1999-2000 budget of $327,520,373. The net 
decrease from the revised FY 1999-2000 budget is SI 9,995,1 15 or 6.29 percent. 



SUMMARY OF PROGRAM EXPENDITURES: 

Proposed 
Mayor's Budget Increase (Decrease) 
Fiscal Year 1999-2000 Fiscal Year From 1999-2000 



Program Expenditures Original Revised 2000-2001 Original Budget 

General City Responsibilities $519,775,009 S 516,383,876 S 535,268,600 S 15,493,591 

Less General Fund Subsidy 

Transfer (192.254,636) (198,436,492) (237,316,331) (45,061,695) 



Total Expenditures $327,520,373 $317,947,384 $ 297,952,269 S (29.568,104) 



DEPARTMENT PERSONNEL SUMMARY: 

The number of full-time equivalent positions budgeted for FY 2000-01 is 2.00 FTEs, which is 
2.00 FTEs more than the 0.00 FTEs in the original FY 1999-2000 budget. The FTE allocations by 
program are as follows: 

Proposed 
Mayor's Budget Increase (Decrease) 
Fiscal Year 1999-2000 Fiscal Year From 1999-2000 



Full Time Equivalents Original Revised 2000-2001 Original Budget 

General City Responsibilities 1 _ -__ 2.00 2.00 

Total - - 2.00 2.00 



BOARD OF SUPERVISORS - BUDGET ANALYST 



76 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 
AMENDMENT OF BUDGET ITEMS 

2000-01 



Department: GEN GENERAL CITY RESPONSIBILITY (continued) 



DESCRIPTION 



The General City Responsibility budget is comprised of general responsibilities not 
covered by other City departments, including General Fund supported debt service. 

The primary changes in General City Responsibility expenditures, which have 
decreased by a net amount of $29,568,104 from the Original Fiscal Year 1999-00 budget, 
are as follows: 



S 5,984,022 Increase in debt service for GO bonds 

215,1 1 1 Transfer of two Committee on Information Technology (COIT) administrative 
support positions from Department of Telecommunications and Information 
Services; this transfer is intended to clarify that COIT serves as an independent 
body 

(297,896) Decrease in General Fund share of Health Service Admin cost 

1,272,958 Increase in General Fund cost of Health Service subsidy for retirees; Medicare 
rates are the primary factor 

204,916 Increase in San Francisco's partner obligation to the Peninsula Corridor Joint 
Powers Board for 2001 

(200,000) No Lease-Finance bonds will be sold this year; no initial payment is required 

72,000 Recent legislation has approved a citywide-bonding program for officials; 

some funds are already budgeted for this purpose in departments; this amount 
represents the General Fund increase in cost for the proposed program 



Board of Supervisors - Budget Analyst 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 

AMENDMENT OF BUDGET ITEMS 

2000-01 



Department: GEN General City Responsibility (continued) 



$ 2,406,905 FY 2000-01 funding for continuing project to implement the JUSTIS system 
for Criminal Justice Departments (Police, Sheriff, Trial Courts, District 
Attorney and Public Defender). This is the unallocated General Fund portion of 
total FY 2000-01 costs of $6,202,540. Allocated expenditures of 53,795,635 
(56,202,540 less S2, 406, 905) are to be paid from funds allocated to customer 
department work orders ($1,750,000), State Trial Court funds (51,675,635) and 
the Mayor's Criminal Justice Council ($370,000). 

591,813 City Computer Store purchaser administration and oversight funded by 
administrative fee of 1 .9 percent on all City department purchases from 
Computer Store vendors. This fee is required by an ordinance amending 
Administrative Code Section 21.8, adopted by the Board of Supervisors 
in June of 1999. 



The expenditures detailed above, which total $10,249,829, are offset by reduced General City 
Responsibility expenditures for one time items and reserves funded in the FY 1999-00 budget, resulting 
in the net reduction of $29,568,104 in expenditures. 



Recommendations 

None. 



Board of Supervisors - Budget Analyst - Q 



DEPARTMENT: 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 

AMENDMENT OF BUDGET ITEMS 
2000-01 

ADP ADULT PROBATION 



Financial Data: 

The Department of Adult Probation's proposed S9,933,559 budget for FY 2000-01 is 5440,530 
or 4.64 percent more than the original FY 1999-2000 budget of 59,493,029. The net increase from the 
revised FY 1999-2000 budget is S337,800 or 3.52 percent. 

SUMMARY OF PROGRAM EXPENDITURES: 



Fiscal Year 1999-2000 



Progr a m Expen d iture s 

Administration-Adult Probation 
Community Services 
Pre-Sentencing Investigation 



Total Expenditures 
Interdepartmental Recoveries 
Net Expenditures 



Original 



Revised 



Proposed 
Mayor's Budget Increase (Decrease) 
Fiscal Year From 1999-2000 
2000-2001 Original Budget 



3,118,958 S 

4,391,257 

1.982,814 



3,221,688 
4,391,257 
1,982,814 



3,023,388 
4,760,816 
2,149,355 



(95,570) 

369,559 

166,541 



S 9,493,029 S 9,595,759 S 9,933,559 S 440,530 
(24.000^ (24.000^ C94.000) HO.OOO^ 



S 9,469,029 S 9,571,759 S 
DEPARTMENT PERSONNEL SUMMARY: 



9,839,559 S 



370,530 



The number of full-time equivalent positions budgeted for FY 2000-01 is 128.80 FTEs, which is 
1.84 FTEs more than the 126.96 FTEs in the original FY 1999-2000 budget. The FTE allocations by 
program are as follows: 

Proposed 
Mayor's Budget Increase (Decrease) 
Fiscal Year 1999-2000 Fiscal Year From 1999-2000 



Full Time Equivalents 


Original 


Revised 


2000-2001 


Orisir 


al Budeet 


Administration-Adult Probation 
Community Services 
Pre-Sentencing Investigation 

Total 




32.91 

65.28 

28.77 

126.96 


32.91 
65.28 
28.77 

126.96 


35.20 
64.84 
28.76 

128.80 




2.29 
(0.44) 

ro.on 




1.84 



BOARD OF SUPERVISORS - BUDGET ANALYST 



79 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 

AMENDMENT OF BUDGET ITEMS 

2000-01 



Department: ADP ADULT PROBATION (continued) 
Department Revenues 

Department revenues have decreased by 592,743 or 5.2 percent and General Fund support has 
increased by 5463,273 or 6.0 percent. Support from the General Fund has increased because the 
Department has lost significant amounts of grant funding. 

Description 

The S440.530 in proposed increased expenditures compared to the original FY 1999-00 budget is 
comprised of increased costs offset by savings and transfers as follows: 

Increased costs for new positions and other personnel costs S239.000 
Increased mandatory fringe benefits costs for new positions & other 

personnel costs S5 1 3,000 

Increased costs in other current expenses. S 1 43,000 

Which are offset by: 

Reductions in expenditures primarily due to loss of grant funding -$454.000 

Approximate Net Increase: S441,000 

Positions and benefits 

The Department is proposing the addition of three new positions: a 1023 Administrator HI, an 1824 
Principal Administrative Analyst, and a grant-funded 4306 Collections Officer at a combined annual 
cost of 5177,490 including mandatory fringe benefits. Annualization of three grant-funded 8444 Deputy 
Probation Officer positions added in FY 1999-00 accounts for an additional S5 1,780 cost in increased 
salary and benefits costs. Attrition savings have increased by SI 7,998, while salaries for temporary 
employees have dropped by S26.42S. Additionally, substitutions resulted in a net savings of 516,466. 
Step increases would also result in some increases in salary and benefit funding. 

Other Current Expenses 

The Department would expend S89,000 in the form of a work order to support the full salary of one 
Department officer assigned to probation work in the Sheriff s Department. The remaining S54,000 
would be expended on work orders to partially support two other probation-related positions at the 
Sheriffs Department. 



Board of Supervisors - Budget Analyst g q 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 

AMENDMENT OF BUDGET ITEMS 

2000-01 



Department: ADP ADULT PROBATION (continued) 

Loss of Grant Funding 

The Department will reduce some expenditures because of a reduction in grant funding. This loss will 
cause (a) the elimination of a S200,000 contract with the University of California to conduct program 
evaluations for the Department, and (b) the reduction or elimination of various other programs totaling 
5254,000. 



COMMENT 

The Mayor's budget provides an increase of S440,530. Our recommended reductions, which 
total 510,500 would still allow an increase of 5430,030 or 4.5% in the Department's budget. 



Board of Supervisors - Budget Analyst . g -^ 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 

AMENDMENT OF BUDGET ITEMS 

2000-01 



Department: ADP - Adult Probation 



Page 
No. 



Object 



Position/ 

Equipment 

Number 



Number 
Exom Ifl 



Amount 



From 



la 



Savings 



Administration 
14 060 Equipment Purchase 

• The recommended reductions in 
Equipment Purchase is the total of 
the following specific 
recommendations regarding 
individual classifications. 



SI 0,500 



SO 



23 



Computers/Monitors 

Delete 5 computer monitors at 
S2, 100 each. The Department had 
initially requested this item as part 
of a grant, but that gTant was 
denied. According to the 
Department, this item remained in 
the budget by mistake 



AP001N 



10,500 



SI 0,500 



Total Recommended Reductions 



S10.500 






Bo ard of Supervison - R"H°rt Analyst 



82 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 
AMENDMENT OF BUDGET ITEMS 

2000-01 



DEPARTMENT: AGW CONSUMER ASSURANCE, REGULATORY COMPLIANCE 
AND AGRICULTURAL STANDARDS 

FINANCL4L Data: 

The Department of Consumer Assurance, Regulatory Compliance and Agricultural Standards" 
proposed 51,612,094 budget for FY 2000-01 is S83,278 or 4.91 percent less than the original FY 1999- 
2000 budget of 51,695,372. The net decrease from the revised FY 1999-2000 budget is 5140,660 or 8.03 
percent. 



SUMMARY OF PROGRAM EXPENDITURES: 

Proposed 
Mayor's Budget Increase (Decrease) 
Fiscal Year 1999-2000 Fiscal Year From 1999-2000 



Program Expenditures Original Revised 2000-2001 Original Budget 

AG WTS & Measures Inspection S 1,695,372 S 1,752,754 S 1,612,094 S (83,278) 

Less Inter Departmental Recoveries - (57,382) (88,800) (88.S00) 



Net Expenditures S 1,695,372 S 1,695,372 S 1,523,294 $ (172,078) 



Department Personnel Summary: 

The number of full-time equivalent positions budgeted for FY 2000-01 is 23.57 FTEs, which is 
0.44 FTEs more than the 23.13 FTEs in the original FY 1999-2000 budget. The FTE allocations by 
program are as follows: 

Proposed 
Mayor's Budget Increase (Decrease) 
Fiscal Year 1999-2000 Fiscal Year From 1999-2000 



Full Time Equivalents Original Revised 2000-2001 Original Budget 

AG WTS & Measures Inspection 23.13 23.13 23.57 0.44 

Total 23.13 23.13 23.57 0.44 



Board of Supervisors - Budget Analyst q o 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 

AMENDMENT OF BUDGET ITEMS 

2000-01 



Department: AGW CONSUMER ASSURANCE, REGULATORY COMPLIANCE 
AND AGRICULTURAL STANDARDS (continued) 



Department Revenues 

Department revenues have decreased by a net of 5166,255 or 12.5 percent and General Fund 
support has decreased by $5,823 or 1.6 percent. Approximately 575,000 of this decrease relates to a 
decline in State grant funds for the California Department of Food and Agriculture (CDFA) Pest 
Exclusion Program, a 550,000 decrease in Farmers' Market revenues, and a 559,000 reduction in 
expected revenue from other public safety charges. 



Description 

A half-time clerk typist and a 6218 Inspector of Weights and Measures, which were previously 
limited tenure positions, are being added to the budget as new permanent positions in 2000-01 . This staff 
performs tobacco advertisement enforcement inspections under a work order to the Health Department's 
Tobacco Free Project. 

Of the total decline in budgeted expenditures of 583.278, S42,000 relates to a decrease in the 
equipment budget (from 542,000 to SO in the current budget year). The Department has informed us that 
they are working with the Mayor's Budget Office to resolve several technical errors related to their FY 
2000-01 budget. 



Board of Supervisors - budget analyst . a A 

84 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 

AMENDMENT OF BUDGET ITEMS 

2000-01 



AGW Admin Svcs— DepL of Consumer Assur ance 

Position/ Number Amount 

Page Equipment 

No. Object Number From To From To Savings 

28 001 Permanent Salaries - Misc. S920,961 S889,984 * 

* The recommended reduction in Permanent Salaries— Misc. is 
the total of the following specific recommendations regarding 
individual classification. 

31 001 Attrition Savings - Misc. 9993M 0.5 0.85 (23,033) (54,010) 30,977 

To increase salary savings from 2.35 percent of salaries to 3.0 percent of salaries, 
for a total increase of $6,355. The Department will achieve an estimated 12.5 
percent savings in FY 1999-00. Additionally, Attrition Savings— Misc. has been 
increased by $24,622 to offset the effect of the Department's upward substitution of 
a 1446 Secretary II position to a 1367 Special Assistant Vm, that would result in 
increased salary and fringe benefit costs made during the past year, without 
budgetary approval by the Board of Supervisors. This recommendation will enable 
the Department to continue to maintain the existing filled position, at the higher 
salary and fringe benefit cost, but will not result in additional expenditure for the 
Department because an offsetting amount will be eliminated from the budget by this 
increase in attrition savings. 

28 013 Mandatory Fringe Benefits 258,777 250,723 8,054 

Corresponds to the reduction in salaries. 

28 023 Employee Field Expense 8,940 2,000 6,940 

Reduce funding since budgeted increase has not been justified by the 
Department Our recommendation provides a 33% increase over the 
projected FY 1999-00 expenditures of $1,500. 

28 032 Utilities 13,600 4,000 9,600 

Reduce to actual 1999-00 expenditure level adjusted by a cost of living 
factor for 2000-01. The Department states that a leak at Farmers' 
Market had increased utilities charges in previous years, however these 
charges have declined since the leak has been fixed 



Subtotal Recommended Reductions S55.5"! 

Board of Supervisors - Budget Analyst oO 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 

AMENDMENT OF BUDGET ITEMS 

2000-01 



DEPARTMENT: ANC ANIMAL CARE AND CONTROL 

FINANCIAL DATA: 

The Department of Animal Care and Control's proposed $2,821,323 budget for FY 2000-01 is 
S66,344 or 2.41 percent more than the original FY 1999-00 budget of $2,754,979. The net increase from 
the revised FY 1999-00 budget is 5104,279 or 3.84 percent. 



Original 




Revised 




2000-2001 


Origin; 


il Budget 


$ 2,744,979 


? 


2,719,244 


S 


2,821,323 


S 




76,344 


S 2,744,979 


S 


2,719.244 


S 


2,821,323 


S 




76,344 


10.000 




(2.200) 




- 






(10.000) 


S 2,7 


s 


2,717,044 


5 


2.821.323 


s 




66.344 



SUMMARY OF PROGRAM EXPENDITirRES: 

Proposed 
Mayor's Budget Increase (Decrease) 
_ Fiscal Year 1999-2000 Fiscal Year From 1999-2000 

Program Expenditures 

Animal Welfare 

Total Operating Expenditures 
Capital Improvements & Fac. Maint. 
Total Expenditures 

DEPARTMENT PERSONNEL SUMMARY: 

The number of full-time equivalent positions budgeted for FY 2000-01 is 41.88 FTEs, which is 
0.99 FTEs more than the 40.89 FTEs in the original FY 1999-00 budget. The FTE allocations by 
program are as follows: 

Proposed 
Mayor's Budget Increase (Decrease) 
Fiscal Year 1999-2000 Fiscal Year From 1999-2000 
Full Time Equivalents Original Revised 2000-2001 Original Budget 

Animal Welfare 40.89 40.89 41.88 0.99 

Total 40.89 40.89 41.88 0.99 



Board of Supervisors - Budget analyst 



86 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 

AMENDMENT OF BUDGET ITEMS 

2000-01 



Department: ANC ANIMAL Care AND CONTROL (continued) 

The increase of 0.99 FTE represents the annualization of three new positions approved in the 1999-2000 
budget. 

DEPARTMENT REVENUES 

The Animal Care and Control Department's projected Departmental revenue for FY 2000-01 
remains unchanged at $188,000. General Fund support has increased by $104,279 or 4.1 percent. 



DESCRIPTION 

The net increase in the budget for FY 2000-01 of $66,344 is comprised of increased salary and 
MOU-related increases ($1 10,333) offset by a reduction in other expenditures ($43,989). 

The proposed budget would allow ANC to comply with the recommendations of the Dog Off- 
Leash Advisory Task Force commissioned by the Board of Supervisors. Proposed funding includes an 
increase of $1 1,200 in materials and supplies. Of the $1 1,200, $8,050 would provide for 23 signs placed 
in existing designated off-leash areas reminding dog owners of their legal obligation to carry a leash and 
pick up dog waste, leash aggressive dogs, and keep dog vaccinations and licenses current. $3,150 of the 
proposed $11,200 increase would provide 21 dog waste bag dispensers for designated off-leash areas. 
Two designated off-leash areas currently have dog waste bag dispensers. 

In addition, ANC's FY 2000-01 proposed budget includes $10,250 for the purchase of five 
portable communication radios, for animal control officers, that are compatible with the City's new 
communication system. 



Recommendations 

None. 



Board of Supervisors - Budget Analyst g 7 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 
AMENDMENT OF BUDGET ITEMS 

2000-01 



DEPARTMENT: CME MEDICAL EXAMINER 



Financial Data: 

The Medical Examiner's proposed S4, 125,247 budget for FY 2000-01 is 5359,027 or 9.53 
percent more than the original FY 1999-2000 budget of $3,766,220. The net increase from the revised 
FY 1999-2000 budget is $360,814 or 9.58 percent. 

SUMMARY OF PROGRAM EXPENDITURES: 

Proposed 
Mayor's Budget Increase (Decrease) 
Fiscal Year 1999-2000 Fiscal Year From 1999-2000 

Program Expenditures Original Revised 2000-2001 Original Budget 

Medical Examiner-Administrarion S 711,381 $ 711,381 $ 739,227 S 27,846 

Medical Examiner-Investigative Services 1,197,479 1,197,479 1,243,540 46,061 

Medical Examiner-Medical Services 1,857,360 1,855,573 2,142,480 285,120 



Total Expenditures $ 3.766,220 S 3,764,433 S 4,125,247 S 359,027 

Interdepartmental Recoveries (10.000) (10.000 ) (15.734) (5.734) 

Net Expenditures S 3.756.220 $ 3,754,433 S 4.109.513 S 353,293 

Department Personnel Summary: 

The number of full-time equivalent positions budgeted for FY 2000-01 is 36.14 FTEs. which is 
0.70 FTEs less than the 36.84 FTEs in the original FY 1999-2000 budget. The FTE allocations by 
program are as follows: 

Proposed 
Mayor's Budget Increase (Decrease) 
Fiscal Year 1999-2000 Fiscal Year From 1999-2000 
Full Time Equivalents Original Revised 2000-2001 Original Budget 

Medical Examiner-Administration 7.11 7.11 7.13 0.02 

Medical Examiner-Investigative Services 14.11 14.11 " 14.17 0.06 

Medical Examiner-Medical Services 15.62 15.62 14.84 (0/78) 

Total 36.84 36.84 36.14 (0.70) 



Board of Supervisors - Budget Analyst g g 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 

AMENDMENT OF BUDGET ITEMS 

2000-01 



Department: CME MEDICAL EXAMINER ( continued) 

DEPARTMENT REVENUES 

Department revenues, which are Medical Examiner fees, have remained the same at SI 75,000 
and General Fund support has increased by $353,293 or 9.9 percent. 

DESCRIPTION 

The increase in net Medical Examiner operating expenditures from the FY 1999-00 original 
budget is $359,027. Major expenditure changes in the proposed budget are summarized below: 

• An increase in Salaries and Fringe Benefits of $86,305 due to mandated MOU increases which are 
already identified in the FY 2000-01 recommended budget.. 

• A proposed increase of $22,623 for Temporary Salaries, Premium Pay, Overtime and Holiday Pay. 

• The Medical Examiner's Office is requesting $ 1 85,000 to purchase a new mass spectrometer/gas 
chromatograph which is used to test for the presence of drugs, alcohol and other compounds. This 
purchase will replace an old and outdated gas chromatograph in the Toxicology lab. 

• The Medical Examiner's Office is also requesting an increase of $37,896 to cover the increased 
service maintenance contract cost for refrigerators in autopsy and an increase of $20,977 for 
additional supplies that are required for an increase of work order services for the Police, Fire and 
Sheriffs Departments. The Budget Analyst recommends approval of these additional funds. 



COMMENT 

The Mayor's budget provides an increase of $359,027. Our recommended reductions, which total 
$145,253, would still allow an increase of $213,774 or 5.7% in the Department's budget. 



BOARD OF SUPERVISORS - BUDGET ANALYST 



89 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 

AMENDMENT OF BUDGET ITEMS 

2000-01 



Department: CME Medical Examiner 



Page 
No. Object 



Position/ 

Equipment 

Number 



Number 
From Iq 



AmounJ 
From To 



Medical Examiner- Administration (ASG) 



45 009 Premium Pay 

Reduce to FY 1 999-00 expenditure 
level, adjusted by a cost of living 
factor for 2000-01 



S24.596 S2 1,596 



45 022 Training 



Reduce to FY 1999-00 expenditure 
level, adjusted by a cost of living 
factor for 2000-01. 



16,870 13,400 



45 035 Other Current Expenditures 

Reduce to FY 1999-00 expenditure 
level, adjusted by a cost of living 
factor for 2000-01. 



58,100 



48,200 



Medical Examiner - Medical Services (ASM) 



46 001 Permanent Salaries - Misc. 

* The recommended reduction in 
Permanent Salaries - Misc. is the 
total of the following specific 
recommendations regarding 
individual classification 



1.313.287 1,280,656 



50 001 Attrition Savings - Mis. 

Increase Attrition Savings to actual 
1999-00 expenditure level adjusted 
for salary increase. 



9993M 



(2.62) (2.98) (239,914) (272,545) 32.631 



Board of Supervisors - Budget Analyst 



90 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 

AMENDMENT OF BUDGET ITEMS 

2000-01 



Department: CME Medical Examiner 



Page 

KSL Object 

46 009 Premium Pay 



Reduce to FY 1999-00 expenditure 
level, adjusted by a cost of living 
factor for 2000-01. 



Position/ 

Equipment 

Number 



Number Amount 

From To From To Savings 

S35,615 $31,615 54,000 



46 013 Mandatory Fringe Benefits 

Corresponds to reduction in 
salaries. 



263,224 256,698 6,526 



46 035 Other Current Expenditures 

Reduce to FY 1999-00 expenditure 
level, adjusted by a cost of living 
factor for 2000-01. 



84,452 65,252 19,200 



46 060 Equipment Purchase 

* The recommended recuction in 
equipment is the total of the 
following specific 
recommendations. 



185,000 180,000 



53 060 Gas Chromati graph Mass 

Spectrome 

To reduce the unit price by S5,000 
from $185,000 to 5180,000. 

[edical Examiner - Investigations (ASN) 



185,000 180,000 5,000 



001 Permanent Salaries - Misc. 

* The recommended reduction in 
Permanent Salaries - Misc. is the 
total of the following specific 
recommendations regarding 
individual classification. 



796,307 747,360 



Rnard nf Supervisors - Budget Analvst 



91 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 

AMENDMENT OF BUDGET ITEMS 

2000-01 



Department: CME Medical Examiner 



Page 

hsh Object 

51 001 Attrition Savings - Misc. 

Increase Attrition Savings to actual 
1 999-00 expenditure level adjusted 
for salary increase. 

48 013 Mandatory Fringe Benefits 

Corresponds to reduction in 
salaries. 



Position/ 

Equipment 

IS mnber 

9993M 



Number 



A moum 



From Tjj From To 

(0.29) (1.05) (SI 8.533) (S67.480) 



205,172 192.593 



Savings. 

$48,947 






Total Recommended Reductions 



SI 45.253 



Board of Su pervisors - Budget Analyst 



92 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 
AMENDMENT OF BUDGET ITEMS 

2000-01 



Department: 



Trial Courts 



Financial Data: 

The Trial Courts' proposed 539,691,700 budget for FY 2000-01 is $2,506,958 or 6.74 percent 
more than the original FY 1999-2000 budget of S37, 184,742. The net increase from the revised FY 
1999-2000 budget is 51,968,702 or 5.22 percent. The 539,691,700 budget amount excludes expenditures 
that will be funded by the State Trial Court Agency Fund in FY 2000-01. When combined with State 
Trial Court Agency Fund funding, which is estimated to be S36,240,041 in FY 2000-01, the Trial 
Court's total budget will be 575,931,741. 

Summary of Program Expenditures: 











Proposed 








Mayor's Budget 


Increase (Decrease) 




Fiscal Year 1999-2000 


Fiscal Year 

2000-2001 


From 1999-2000 


Program Expenditures 


Original 


Revised 


Original Budget 


Accounting Automation 


S 


S 


s 


S 


Court House Construction 


4,535,103 


4,560,103 


4,992,470 


457,367 


Dispute Resolution Program 


349,000 


355,022 


422,573 


73,573 


District Attorney Child Support 










Services 


1.107,336 


1,107,336 


1,225,791 


118,455 


Indigent Defense/Grant Jury 


5,918,930 


6,426,930 


7,173,430 


1,254,500 


Municipal Court Services 


25,096,558 


25,096,558 


25,025,845 


(70,713) 


Superior Court Services 


141,815 


166,049 


136,591 


(5,224) 


Subtotal 


37,148.742 


37,711,998 


38,976,700 


1,827,958 



Trial Court Services 



Total Operating Expenditures $ 37,148,742 S 37,711,998 S 38,976,700 S 1,827,958 

Capital Improvements & Fac. Maint. 36.000 11.000 715,000 679,000 

Total Expenditures 



$ 37,184,742 S 37,722,998 $ 39,691,700 S 



2.506.958 



Board of Supervisors - Budget Analyst 



93 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 
AMENDMENT OF BUDGET ITEMS 

2000-01 



Department: Trial Courts 

Department Personnel Summary: 

The number of full-time equivalent positions budgeted for FY 2000-01 is 577.74 FTEs, which is 
7.00 FTEs more than the 570.74 FTEs in the original FY 1999-2000 budget. The FTE allocations by 
program are as follows: 











Proposed 








Mayor's Budget 


Increase (Decrease) 




Fiscal Year 


1999-2000 


Fiscal Year 


From 1999-2000 


Full Time Equivalents 


Original 


Revised 


2000-2001 


Original Budget 


District Attorney Child 










Support Services 


14.50 


14.50 


16.75 


2.25 


Municipal Court Services 


3.00 


3.00 


- 


(3.00) 


Superior Court Services 


1.00 


1.30 


1.75 


0.75 


Trial Court Services 


552.24 


552.24 


559.24 


7.00 



Total 570.74 571.04 577.74 7.00 



Department Revenues 

Department revenues have increased by S8.103.973 or 13.9 percent and General Fund support 
has increased by $1,789,946 or 5.7 percent. The increased revenues consist of increased State Trial 
Court Agency Fund funding, increases in court filing fee revenue, and State subventions. 



Description 

Under State law, the Board of Supervisors has authority over only a portion of the total Trial 
Courts budget. For FY 2000-01, the amount subject to Board review and approval is S16. 350.290. That 
is the amount remaining from the total Trial Courts proposed budget of S75.931.741 after deducting 
State Trial Court Agency Fund funding of $36,240,041 and the mandated local contribution of 
523,341,410. The table on the following page shows the funding sources of the Trial Court's budget. 



Board of Supervisors - Budget Analyst 9 4 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 

AMENDMENT OF BUDGET ITEMS 

2000-01 



Department: Trial Courts 



A breakdown of funding sources and proposed expenditures amounts for FY 2000-01 is as 



follows: 



Source 


Funds Provided bv 


Proposed 

Expenditure 

Amount 


State Trial Court Agency Fund 
State mandated local 
maintenance of effort 

State Funding Total 


State funds 

City and County General Fund, as mandated 
by the State to obtain State Trial Court 
Agency Fund funding 


$36,240.041 (1) 

S23.341.410 
$59,581,451 


City and County 


1 . City and County General Fund 
supported, at discretion of City and 
County 

2. Courthouse Construction Fund 

3. Filing Fees & Other Funds 


$9,657,059 
S4,992,470 
$1,700,761 
$16,350,290 


Total Operating Budget 




$75,931,741 



(1) The final amount of State funding will not be known until later in the summer after the State budget is adopted. The amount shown represents the best 
estimate of the level of Tnal Court funding for FY 2000-01 available at this time 



Board of Supervisors - Budget Analyst 



95 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 

AMENDMENT OF BUDGET ITEMS 

2000-01 



Department: Trial Courts 

The approximately $16.4 million in proposed FY 2000-01 Trial Courts costs subject to local approval is 
comprised of the following: 





Original 


Proposed 


1 


% 




1999-00 


2000-01 


S Change 


! Change 


ICeneral Fund supported: 


141,815 


136,591 


224) 


-3.7% 


Juvenile Dependency Mediation 


Fringe benefits for Municipal Ct. judges 


87,200 


110.000 


22.800 


26 1% 


Rent for storage of court files 


3.500 


3.500 


- 


0.0% 


Services of other departments. Municipal Ct. 


1.386,729 


1.416.435 


29,706 


2.1% 


Unlines (575 Polk St.) 


4,500 


4.500 


- 


0.0% 


Drug Court facility improvements 


- 


715,000 


715,000 


0.0% 


Indigent defense 


5.900,000 


7,150,000 


1.250,000 


21 2% 


Office of Family Law Facilitator (GF portion) 


196.591 


97,603 


(98.988) 


-504% 


Grand Jury expenses 


18.930 


23.430 


4.500 


23.8% 


Subtotal General Fund 


7,739,265 


9,657,059 


1.917,794 


24.8% 


Filing fees, grants and other funds: 


349.000 


422.573 


73,573 


21.1% 


Alternative Dispute Resolution (1) 


Children's waiting rooms ( 1 ) 


121.848 


150,000 


28,152 


23.1% 


Drug Court operating costs 


181.371 




(181,371) 


-100.0% 


Office of Family Law Facilitator (non-GF portion) (2) 


910,745 


1,128.188 




23.9% 


Courthouse construction debt service (3) 


4.535.103 


4.992.4-0 


457,367 


10.1% 


Subtotal Fees/other 


6.098.067 


6,693.231 


595.164 


9.8% 


GRAND TOTAL 


13.837 J32 


16J50.290 


2.512.958 


18.2% 



( 1 ) Funded by court filing fees 

(2) Funded by State AB 1058 funds 

(3) Courthouse construction fee funded by court filing fees and parking citation fee 

As shown, the proposed General Fund contribution to the Trial Courts is proposed to increase by 
51,917,794, or by 24.8 percent over the original Fiscal Year 1999-00 budget. The increase is primarily 
due to: 1) a proposed increase in fees for private attorneys and investigators who provide indigent 
defense services in cases where the Public Defender's Office has a conflict of interest (+S 1,250.000); 
and, 2) one time remodeling costs for the drug court at the Hall of Justice (+S7 15,000). Other less 
significant increases are proposed for the children's waiting rooms (-S2S.152) fringe benefits for 
Municipal Court judges (+S22.800). services of other departments (-S29. 7 06) and Grand Jury costs 
(+$4,500). General Fund decreases are proposed for Juvenile Dependency Mediation services (-$5,224) 
and the General Fund portion of the Office of the Family Law Facilitator (-S98,988). 

Costs for programs and services funded by filing fees, grants, and other sources (but not eligible 
for State Trial Court Agency funding) are proposed to increase by S595.164 due to increases in 
courthouse construction debt service costs (+S457,367) and increased operating costs of the Office of 
Family Law Facilitator and Alternative Dispute Resolution program. Aji offsetting SI 8 1.3 71 cost 



Board of Supervisors - Budget Analyst 



96 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 

AMENDMENT OF BUDGET ITEMS 

2000-01 



Department: Trial Courts 

decrease is proposed as drug court operating costs are being transferred to the Court's State Trial Court 
budget for FY 2000-01 though the program will continue to be grant funded. 

The net effect of all proposed increases and decreases in all areas not eligible for State Trial 
Court Agency funding is an increase of S2,5 12,958, or 18.2 percent, in proposed locally approved 
funding for the Trial Courts. 

Court Unification 

Proposition 220, the State ballot measure adopted by vote in the general election of June, 1998, 
provided for voluntary unification of superior and municipal courts in California into one countywide 
superior court. The trial courts of the City and County of San Francisco unified their operations in 
December 1998 and changed their name to the Superior Court. Provisions of the measure included 
abolishing the municipal court in each county, making all judges and employees superior court judges 
and employees, respectively, and eliminating municipal court cases, replacing them with "limited civil 
cases". 

The California Legislative .Analyst reported that the fiscal impact of Proposition 220, while not 
entirely certain, should lead to net savings in the long term through greater efficiency and flexibility in 
the assignment of judges, reductions in the need for new judgeships, improved records management, and 
reduced administrative costs. To date, the San Francisco Trial Courts report that they have not incurred 
net savings as result of unification though they expect to realize such savings in the future. 

Comment 

The Mayor's budget provides an increase of $2,506,958. Our recommended reductions, which total 
$1,208,088, would still allow an increase of SI, 298,870, or 3.5% in the Department's budget. 



Board of Supervisors- Budget Analyst • 97 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 

AMENDMENT OF BUDGET ITEMS 

2000-01 



Department: CRT - Trial Courts 



Page 
No. 



Object 



Account Title 



Children's Waiting Room 



Position/ 

Equipment 

Number 



Number 



From To 



Amount 
From To 



s;nin^' 



69 



027 



Professional and Specialized Services 

The proposed amount of funding for the 
Children's Waiting room project at the 
courthouse was estimated and inlcuded m 
the budget before a contract had been 
finalized with the service providers. The 
court now reports that it is seeking a cost 
of living adjustment over last year's 
funding level for this project. The amount 
recommended allows for a 3.5 percent 
increase over the FY 1999-00 funding 
level. 



SI 50,000 SI 26.000 S 



Indigent Defense 



74 026 Court Fees & Other 
Compensation 

The requested $7, 150,000 consists of a base 
amount of 55,920,000 for private court 
appointed counsel and attorneys who 
represent indigent defendants when the 
Public Defender has a conflict of interest and 
an increase of SI, 230,000 to cover additional 
costs resulting from a proposed increase in 
the hourly rates paid to private attorneys and 
investigators. The proposed increases for 
attorneys would increase their hourly rates 
from between S55 and $95 per hour to 
between $55 and $125 per hour, depending 
on the type of case. The proposed increases 
range from 25 to 33 percent (the rate for 
misdemeanors would remain the same under 
the proposal). The proposed increase for 
investgators is 28.6% from $35 to S45 per 
hour. 



7.150,000 6,526.000 624,0( 



Board of Supervisors - Budpet Analyst 



98 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 

AMENDMENT OF BUDGET ITEMS 

2000-01 



)epartment: CRT - Trial Courts 



Position/ Number Amount 

Equipment 
Object Account Title Number From To From To Savings 

This recommended reduction consists of two 
components. The first is a reduction in the base 
amount of funding of $229,000 due to a reduction in 
the number of cases that will be assigned to private 
counsel in FY 2000-01 as a result of the Public 
Defender resuming its services in one of the Court's 
four preliminary hearing courtrooms in FY 1999-00. 

The estimated impact of the proposed increase in 
attorney rates would be approximately 5955,000 per 
year in addition to base costs for private attorneys of 
approximatley $4.0 million annually. The rate of 
increase proposed for private court appointed counsel 
is based on the rate of increase in the salaries of City- 
employed attorneys. The private indigent defense 
attorneys have not had an increase in their hourly rates 
since 1990 and, in fact, lowered their rates in 1992. 
However, their average hourly rate in 1990 was 
already higher than the average hourly rate of Public 
Defender attorneys. 

The proposed increase in hourly rates for attorneys 
would result in the private attorney's average hourly 
cost and average cost per case both exceeding the 
same costs for the Office of the Public Defender for 
comparable cases. The Budget Analyst proposes an 
alternative rate schedule that would allow for an 
average mcrease of approximately 14 percent and 
would bring the average cost per hour of the private 
attorneys to a level comparable to the average cost per 
hour of Public Defender attorneys. This level of 
increase would reduce the proposed funding level for 
mdigent defense costs by another $395,000, the 
second component of the total recomemnded 
reduction of $624,000. 



Board oiSuiKr3Jis_oj^JJud2CLAnalv>t 



99 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 

AMENDMENT OF BUDGET ITEMS 

2000-01 



Department: CRT - Trial Courts 



Page 
No. 



Object 



Account Title 



Position/ 

Equipment 

Number 



.Vunbejr 



From To 



Amount 



I -p.»m 



Ifi 



Savino 



The Budget Analyst also recommends that the City 
conduct an analysis of the comparative costs of 
creating a second Public Defender's Office in lieu of 
using private counsel for all conflict of interest cases. 
A preliminary analysis conducted by the Budget 
Analyst indicates that the private court appointed 
counsel cases are already higher than the average 
costs per case of the Public Defender's office for 
comparable cases. If that is proven to be true after 
futhcr detailed analysis, the City could potentially 
save on its total indigent defense costs through 
creation of a second Public Defender's Office. Such 
offices have been established in other counties in 
California such as San Diego and Contra Costa 
counties. 

The Budget Analyst does recommend an increase m 
the rates paid to private invesngators on court 
appointed cases, which have not been increased since 
1984 and would be made comparable to invesngators 
in Public Defender's Office through the proposed 
increase. The estimated impact of the investigators 
rate increase is S275.000 per year which is included in 
the 57,150,000 Court Fees and Other Compensation 
budget. 



Courthouse Construction 



77 070 Debt Service 

The amount of debt service on the 
courthouse should remain the same 
as last year. Our recommended 
reduction of S5 15.247 is the amount 
of funding which is not needed for 
the Court's debt service. 



4,751,401 4.236,154 515.2 



Board of Supervisors - Budpet Analyst 



100 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 

AMENDMENT OF BUDGET ITEMS 

2000-01 



CRT - Trial Courts 



•age 

No. Object Account Title 

.strict Attorney Child Support Services 



Position/ 

Equipment 

Number 



Number 
From To 



Amount 
From To 



Savings 



001 Permanent Salaries 

* The recommended reduction m 
Permanent Salaries - iMisc. is the 
total of the following specific 
recommendations regarding 
individual classifications. 

Judicial Clerk 



S935.599 S864.424 



0681 N 



The Court is requesting one new 0676 
Research Assistant (.75 FTE for FY 2000-01) 
and two new 0681 Senior Judicial Clerks (1.5 
FTEs for FY 2000-2001) for the Office of 
Family Law Facilitator. The Research Assistant 
would help clients find needed services both 
within the Court and in the community. The 
two Senior Judicial Clerks would assist with 
clerical duties in the office. The Budget 
Analyst recommends approval of the one new 
Research Assistant position (.75 FTE) and one 
of the two requested Judicial Clerks (or .75 of 
the 1.5 FTEs requested). Though workload has 
increased in this division, the program 
currently already has 5.5 Judicial Clerk, Senior 
Judicial Clerk, and Judicial Secretary positions 
budgeted out of its authorized 14.5 positions to 
perform clerical duties for the Office of the 
Family Law Facilitator. 



1.5 0.75 



71,175 



35,588 S35,58S 



1 3 Mandatory Fringe Benefits 

Corresponds to reduction in 
salaries. 



Total Recommended Reductions 



223.168 213,915 



9.253 



SI. 208.088 



101 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 
AMENDMENT OF BUDGET ITEMS 

2000-01 



DEPARTMENT: 



DAT DISTRICT ATTORN M 



Financial Data: 

The District Attorney's proposed $27,516,010 budget for FY 2000-01 is 5357,687 or 1.32 
percent more than the original FY 1999-2000 budget of 527,158,323. The net increase from the revised 
FY 1999-2000 budget is SI 3 1,753 or 0.48 percent. 



Summary of Program Expenditures: 















Proposed 










Mayor's Budget 


Increase (Decreast i 




Fiscal Year 


1999-200 




Fiscal Year 
2000-2001 


From 1999-2000 


Program Expenditures 


Original 




Revised 


Original Budget 


Administration - Criminal & Civil 


S 706,446 


S 


706,446 


S 


635,195 


S (71,251) 


Career Criminal Prosecution 


709,365 




709,365 




680,733 


(28,632) 


Child Abduction 


511,115 




511.115 




271 


36,156 


Child Support Services Program 


287,882 




287,882 




- 


(287,882) 


Family Violence Program 


444,860 




-U4,860 




429.280 


(15,580) 


Felony Prosecutton 


13777261 




13777261 




14232279 




EPP/Subpoena Program 


319,995 




319,995 




309,374 


(10.621) 


Misdemeanor Prosecution 


1. "27,674 




1.727,674 




1.678,217 


(4Q 


Support Services 


2,461,688 




2,461,688 




2.406.310 


• 622 


Work Orders & Grants 


6.212,037 




6,437,971 




6.507,351 


29: 


Total Expenditures 


S 27,158.323 


s 


27,38 - 


S 


2".5 16,010 


S 357,687 


Interdepartmental Recoveries 


(2.442.976) 
S 24,715,347 


I 


(2.603.831) 
24,780,426 




(2.672.842) 


(229.866) 


Net Expenditures 


s 


-3,168 


S 127,821 



Board of Supervisors - Budget analyst 



102 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 
AMENDMENT OF BUDGET ITEMS 

2000-01 



Department: DAT DISTRICT ATTORNEY (continued) 



Department Personnel Summary: 



The number of full-time equivalent positions budgeted for FY 2000-01 is 268.97 FTEs, which is 
6.43 FTEs more than the 262.54 FTEs in the original FY 1999-2000 budget. The FTE allocations by 
program are as follows: 



Full Time Equivalents 

Administration - Criminal & Civil 
Career Criminal Prosecution 
Child Abduction 
Family Violence Program 
Felony Prosecution 
IPP/Subpoena Program 
Misdemeanor Prosecution 
Support Services 
Work Orders & Grants 











Proposed 






Mayor' 


s Budget 


Increase (Decrease) 


Fiscal Year 1999-2000 


Fiscal Year 


From 1999-2000 


Original 


Revised 


2000-2001 


Original Budget 


3.56 


3.56 




3.56 




5.78 


5.78 




5.78 


- 


5.75 


5.75 




5.66 


(0.09) 


4.82 


4.82 




4.56 


(0.26) 


113.86 


113.86 




114.97 


1.11 


4.90 


4.90 




4.90 


- 


19.08 


19.08 




18.16 


(0.92) 


39.39 


39.39 




40.10 


0.71 


65.40 


65.40 




71.28 


5.SS 



Total 
Department Revenues 



262.54 262.54 



268.97 



6.43 



Department revenues have decreased by SI 44.822 or 2.6 percent and General Fund support has 
increased by $272,643 or 1.4 percent. 

Description 

The 5357,687 increase in the Department's proposed budget is explained primarily by: 

• Permanent salaries, which are proposed to increase by 5325,022 for the addition of two new 1ST? 
Legal Assistants, one a work-ordered position by the Police Department and the other paid for by 
State SB-90 monies, a new part-time 8132 District Attorney's Investigator work-ordered by the 
Child Support Services Department, 4 7 2 additional grant-funded positions, and step increases for 
existing positions. 



BOARD OF SUPERVISORS - BUDGET ANALYST 



103 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 
AMENDMENT OF BUDGET ITEMS 

2000-01 



Department: DAT DISTRICT ATTORNEY (continued) 

• Mandatory Fringe Benefits which would increase by S42 1,037 primarily due to the FY 2000-01 
reinstatement of mandatory employer contributions to the Public Employee Retirement System. 

• An increase in Travel and Training expenses of 510,500. 

• Other small, miscellaneous increases. 
These increases would be offset by: 

• A $ 1 7 1 ,080 reduction in Equipment Purchases 

• A 552,980 reduction in Materials and Supplies and Other Materials and Supplies 

• A 530,636 reduction in Other Current Expenses 

• A 519,416 reduction in Rents and Leases 

• Miscellaneous savings and reductions, including reduced transfers to other departments. 

RECOMMENDATIONS 

None. 



Board of Supervisors - Budget analyst 

104 



RECOMMENDATIONS OF THE BUDGET ANALYST FOR 

AMENDMENT OF BUDGET ITEMS 

2000-01 



DEPARTMENT: 



FIR FIRE DEPARTMENT 



FINANCIAL DATA: 

The Fire Department's proposed $204,010,186 budget for FY 2000-01 is $29,556,653 or 16.94 
percent more than the original FY 1999-2000 budget of $174,453,533. Th